diff --git a/nova/auth/manager.py b/nova/auth/manager.py
index fc9aec07..e4d4afb7 100644
--- a/nova/auth/manager.py
+++ b/nova/auth/manager.py
@@ -524,8 +524,11 @@ class AuthManager(object):
                                               member_users)
             if project_dict:
                 project = Project(**project_dict)
-                # FIXME(ja): EVIL HACK
-                db.network_create(context, {'project_id': project.id})
+                try:
+                    db.network_allocate(context, project.id)
+                except:
+                    drv.delete_project(project.id)
+                    raise
                 return project
 
     def add_to_project(self, user, project):
@@ -574,7 +577,6 @@ class AuthManager(object):
 
     def delete_project(self, project, context=None):
         """Deletes a project"""
-        # FIXME(ja): EVIL HACK
         network_ref = db.project_get_network(context,
                                              Project.safe_id(project))
         try:
diff --git a/nova/tests/network_unittest.py b/nova/tests/network_unittest.py
index 3552a77b..afa21767 100644
--- a/nova/tests/network_unittest.py
+++ b/nova/tests/network_unittest.py
@@ -179,18 +179,17 @@ class NetworkTestCase(test.TrialTestCase):
                                                   FLAGS.num_networks)
 
     def test_too_many_networks(self):
-        """Ensure error is raised if we run out of vpn ports"""
+        """Ensure error is raised if we run out of networks"""
         projects = []
+        # TODO(vish): use data layer for count
         networks_left = FLAGS.num_networks - models.Network.count()
         for i in range(networks_left):
             project = self.manager.create_project('many%s' % i, self.user)
-            self.service.set_network_host(project.id)
             projects.append(project)
-        project = self.manager.create_project('boom' , self.user)
         self.assertRaises(db.NoMoreNetworks,
-                          self.service.set_network_host,
-                          project.id)
-        self.manager.delete_project(project)
+                          self.manager.create_project,
+                          'boom',
+                          self.user)
         for project in projects:
             self.manager.delete_project(project)