diff --git a/pom.xml b/pom.xml
index bfeeb4c4b..9a9f41a79 100644
--- a/pom.xml
+++ b/pom.xml
@@ -15,7 +15,7 @@
 	<parent>
 		<groupId>org.springframework.data.build</groupId>
 		<artifactId>spring-data-parent</artifactId>
-		<version>1.3.0.RC1</version>
+		<version>1.3.0.BUILD-SNAPSHOT</version>
 		<relativePath>../spring-data-build/parent/pom.xml</relativePath>
 	</parent>
 	
@@ -38,11 +38,11 @@
         <source.level>1.7</source.level>
         <target.level>1.7</target.level>
 
-		<neo4j.version>2.0.0</neo4j.version>
+		<neo4j.version>2.0.1</neo4j.version>
 
-		<neo4j.spatial.version>0.12-neo4j-2.0.0</neo4j.spatial.version>
-		<neo4j.graph-collections.version>0.7.1-neo4j-2.0.0</neo4j.graph-collections.version>
-		<neo4j-cypher-dsl.version>2.0.0</neo4j-cypher-dsl.version>
+		<neo4j.spatial.version>0.12-neo4j-2.0.1-SNAPSHOT</neo4j.spatial.version>
+		<neo4j.graph-collections.version>0.7.1-neo4j-2.0.1-SNAPSHOT</neo4j.graph-collections.version>
+		<neo4j-cypher-dsl.version>2.0.1-SNAPSHOT</neo4j-cypher-dsl.version>
 	</properties>
 
 
diff --git a/spring-data-neo4j-rest/pom.xml b/spring-data-neo4j-rest/pom.xml
index 62e1bc832..16f471fea 100644
--- a/spring-data-neo4j-rest/pom.xml
+++ b/spring-data-neo4j-rest/pom.xml
@@ -19,7 +19,7 @@
 	<properties>
 		<validation>1.0.0.GA</validation>
 		<jersey.version>1.9</jersey.version>
-		<neo4j-rest-graphdb.version>2.0.0</neo4j-rest-graphdb.version>
+		<neo4j-rest-graphdb.version>2.0.1-SNAPSHOT</neo4j-rest-graphdb.version>
 	</properties>
 
 	<dependencies>
@@ -115,6 +115,10 @@
 				   <groupId>org.neo4j</groupId>
 				   <artifactId>neo4j-lucene-index</artifactId>
 			   </exclusion>
+			   <exclusion>
+				   <groupId>org.neo4j</groupId>
+				   <artifactId>server-api</artifactId>
+			   </exclusion>
 			</exclusions>
 		</dependency>
 
diff --git a/spring-data-neo4j/pom.xml b/spring-data-neo4j/pom.xml
index cc7e4c2dd..52bd1515b 100644
--- a/spring-data-neo4j/pom.xml
+++ b/spring-data-neo4j/pom.xml
@@ -197,6 +197,10 @@
 					<groupId>org.neo4j</groupId>
 					<artifactId>neo4j</artifactId>
 				</exclusion>
+				<exclusion>
+					<groupId>org.neo4j</groupId>
+					<artifactId>neo4j-lucene-index</artifactId>
+				</exclusion>
 			</exclusions>
 		</dependency>
 
diff --git a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/node/Neo4jHelper.java b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/node/Neo4jHelper.java
index c587a609d..1914a1d47 100644
--- a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/node/Neo4jHelper.java
+++ b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/node/Neo4jHelper.java
@@ -20,6 +20,8 @@ import org.neo4j.graphdb.*;
 import org.neo4j.graphdb.index.Index;
 import org.neo4j.graphdb.index.IndexManager;
 import org.neo4j.graphdb.index.RelationshipIndex;
+import org.neo4j.kernel.GraphDatabaseAPI;
+import org.neo4j.kernel.impl.core.NodeManager;
 import org.neo4j.tooling.GlobalGraphOperations;
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
@@ -80,10 +82,13 @@ public abstract class Neo4jHelper {
     }
 
     private static void removeNodes(GraphDatabaseService graphDatabaseService, boolean includeReferenceNode) {
+        GraphDatabaseAPI api = (GraphDatabaseAPI) graphDatabaseService;
+        NodeManager nodeManager = api.getDependencyResolver().resolveDependency(NodeManager.class);
         final GlobalGraphOperations globalGraphOperations = GlobalGraphOperations.at(graphDatabaseService);
         for (Node node : globalGraphOperations.getAllNodes()) {
             for (Relationship rel : node.getRelationships(Direction.OUTGOING)) {
                 try {
+                    if (nodeManager.isDeleted(rel)) continue;
                     rel.delete();
                 } catch(IllegalStateException ise) {
                     if (!ise.getMessage().contains("since it has already been deleted")) throw ise;
@@ -93,6 +98,7 @@ public abstract class Neo4jHelper {
         }
         for (Node node : globalGraphOperations.getAllNodes()) {
             try {
+                if (nodeManager.isDeleted(node)) continue;
                 node.delete();
             } catch(IllegalStateException ise) {
                 if (!ise.getMessage().contains("since it has already been deleted")) throw ise;
diff --git a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/typerepresentation/TypeRepresentationStrategyFactory.java b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/typerepresentation/TypeRepresentationStrategyFactory.java
index eb8e4c8e3..e66707e23 100644
--- a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/typerepresentation/TypeRepresentationStrategyFactory.java
+++ b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/typerepresentation/TypeRepresentationStrategyFactory.java
@@ -56,7 +56,7 @@ public class TypeRepresentationStrategyFactory {
             if (SubReferenceNodeTypeRepresentationStrategy.isStrategyAlreadyInUse(graphDatabaseService)) return Strategy.SubRef;
             if (LabelBasedNodeTypeRepresentationStrategy.isStrategyAlreadyInUse(graphDatabaseService)) return Strategy.Labeled;
             tx.success();
-            return Strategy.Labeled;
+            return Strategy.Indexed;
         }
     }
 
diff --git a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/DerivedFinderTests.java b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/DerivedFinderTests.java
index 92e4503b7..b69cceb4c 100644
--- a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/DerivedFinderTests.java
+++ b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/DerivedFinderTests.java
@@ -21,6 +21,7 @@ import org.junit.Ignore;
 import org.junit.Test;
 import org.junit.runner.RunWith;
 import org.neo4j.graphdb.GraphDatabaseService;
+import org.neo4j.graphdb.Node;
 import org.neo4j.graphdb.Transaction;
 import org.neo4j.helpers.collection.IteratorUtil;
 import org.neo4j.test.TestGraphDatabaseFactory;
@@ -205,7 +206,7 @@ public class DerivedFinderTests {
 
         CRUDRepository<Ingredient> ingredientRepository = template.repositoryFor(Ingredient.class);
 
-        transaction = graphDatabaseService.beginTx();
+        Transaction tx = graphDatabaseService.beginTx();
         try {
             chocolate = ingredientRepository.save(new Ingredient("chocolate"));
             fish = ingredientRepository.save(new Ingredient("fish"));
@@ -224,17 +225,29 @@ public class DerivedFinderTests {
             whiteChocolateSquares = recipeRepository.save(new Recipe("Heston", "White Chocolate squares", chocolate, null, null));
 
             dish = dishRepository.save(new Dish(100));
-            transaction.success();
+            tx.success();
         } finally {
-            transaction.finish();
+            tx.close();
         }
+        tx = graphDatabaseService.beginTx();
+        try {
+            for (Node node : graphDatabaseService.getAllNodes()) {
+                System.out.println("node = " + node);
+            }
+            tx.success();
+        } finally {
+            tx.close();
+        }
+
         transaction = graphDatabaseService.beginTx();
     }
 
     @After
     public void tearDown() throws Exception {
         if (transaction!=null) {
-            transaction.success();transaction.finish();
+            transaction.success();
+            transaction.close();
+            transaction = null;
         }
     }
 
@@ -340,6 +353,10 @@ public class DerivedFinderTests {
     public void shouldFindUsingEntityAndPropertyTraversal() throws Exception {
         Set<Recipe> recipes = recipeRepository.findByIngredientAndCookBookTitle(oliveOil, "Naked Chef");
 
+        for (Node node : graphDatabaseService.getAllNodes()) {
+            System.out.println("in test = " + node);
+        }
+
         assertThat(single(recipes).title, is(equalTo("pesto")));
     }
     @Test
diff --git a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/SpatialGraphRepositoryTests.java b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/SpatialGraphRepositoryTests.java
index 943e0d61b..a55c6d046 100644
--- a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/SpatialGraphRepositoryTests.java
+++ b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/repository/SpatialGraphRepositoryTests.java
@@ -17,6 +17,7 @@
 package org.springframework.data.neo4j.repository;
 
 import org.junit.Before;
+import org.junit.Ignore;
 import org.junit.Test;
 import org.junit.runner.RunWith;
 import org.slf4j.Logger;
@@ -97,4 +98,20 @@ public class SpatialGraphRepositoryTests {
         Iterable<Person> teamMembers = personRepository.findWithinDistance("personLayer", 16,56,70);
         assertThat(asCollection(teamMembers), hasItems(testTeam.michael, testTeam.david));
     }
+
+    @Test
+    @Ignore
+    public void testPerformance() throws Exception {
+        long time=System.currentTimeMillis();
+        for (int i=0;i<5000;i++) {
+            if (i % 1000 == 0) {
+                long now = System.currentTimeMillis();
+                System.out.println(i+". entries " + (now-time));
+                time=now;
+            }
+            Person person = new Person("John " + i, 40 + i);
+            person.setLocation((i % 180) - 90,(i % 180) - 90);
+            personRepository.save(person);
+        }
+    }
 }