diff --git a/cmd.go b/cmd.go
index 71cacb6..30d05ea 100644
--- a/cmd.go
+++ b/cmd.go
@@ -73,7 +73,7 @@ func main() {
 			log.Info("Unable to connect to btcd. Retrying in 5 seconds.")
 			time.Sleep(5 * time.Second)
 		} else if err != nil {
-			log.Info(err.Error())
+			log.Error(err)
 			break
 		}
 	}
diff --git a/cmdmgr.go b/cmdmgr.go
index cbdf067..9b2d6ca 100644
--- a/cmdmgr.go
+++ b/cmdmgr.go
@@ -336,10 +336,22 @@ func CreateEncryptedWallet(reply chan []byte, msg []byte) {
 		return
 	}
 
-	wallets.Lock()
-	wallets.m[wname] = &BtcWallet{
-		Wallet: w,
+	// Grab a new unique sequence number for tx notifications in new blocks.
+	seq.Lock()
+	n := seq.n
+	seq.n++
+	seq.Unlock()
+
+	bw := &BtcWallet{
+		Wallet:         w,
+		NewBlockTxSeqN: n,
 	}
+	// TODO(jrick): only begin tracking wallet if btcwallet is already
+	// connected to btcd.
+	bw.Track()
+
+	wallets.Lock()
+	wallets.m[wname] = bw
 	wallets.Unlock()
 	ReplySuccess(reply, v["id"], nil)
 }
diff --git a/sockets.go b/sockets.go
index d654242..a294eeb 100644
--- a/sockets.go
+++ b/sockets.go
@@ -45,6 +45,10 @@ var (
 	// Messages sent to this channel are sent to each connected frontend.
 	frontendNotificationMaster = make(chan []byte, 100)
 
+	// replyHandlers maps between a sequence number (passed as part of
+	// the JSON Id field) and a function to handle a reply or notification
+	// from btcd.  As requests are received, this map is checked for a
+	// handler function to route the reply to.
 	replyHandlers = struct {
 		sync.Mutex
 		m map[uint64]func(interface{}) bool