diff --git a/pkg/storage/cacher.go b/pkg/storage/cacher.go
index 365e224e8757d..652a03b7281d2 100644
--- a/pkg/storage/cacher.go
+++ b/pkg/storage/cacher.go
@@ -30,6 +30,7 @@ import (
 	"k8s.io/kubernetes/pkg/client/cache"
 	"k8s.io/kubernetes/pkg/conversion"
 	"k8s.io/kubernetes/pkg/runtime"
+	utilruntime "k8s.io/kubernetes/pkg/util/runtime"
 	"k8s.io/kubernetes/pkg/util/wait"
 	"k8s.io/kubernetes/pkg/watch"
 
@@ -540,6 +541,8 @@ func (c *cacheWatcher) sendWatchCacheEvent(event watchCacheEvent) {
 }
 
 func (c *cacheWatcher) process(initEvents []watchCacheEvent) {
+	defer utilruntime.HandleCrash()
+
 	for _, event := range initEvents {
 		c.sendWatchCacheEvent(event)
 	}
diff --git a/pkg/storage/cacher_test.go b/pkg/storage/cacher_test.go
index d15a17f06e49c..6b6d6e0ad6c0a 100644
--- a/pkg/storage/cacher_test.go
+++ b/pkg/storage/cacher_test.go
@@ -19,6 +19,7 @@ package storage_test
 import (
 	"fmt"
 	"reflect"
+	goruntime "runtime"
 	"strconv"
 	"testing"
 	"time"
@@ -159,15 +160,19 @@ func TestList(t *testing.T) {
 }
 
 func verifyWatchEvent(t *testing.T, w watch.Interface, eventType watch.EventType, eventObject runtime.Object) {
+	_, _, line, _ := goruntime.Caller(1)
 	select {
 	case event := <-w.ResultChan():
 		if e, a := eventType, event.Type; e != a {
+			t.Logf("(called from line %d)", line)
 			t.Errorf("Expected: %s, got: %s", eventType, event.Type)
 		}
 		if e, a := eventObject, event.Object; !api.Semantic.DeepDerivative(e, a) {
+			t.Logf("(called from line %d)", line)
 			t.Errorf("Expected (%s): %#v, got: %#v", eventType, e, a)
 		}
 	case <-time.After(wait.ForeverTestTimeout):
+		t.Logf("(called from line %d)", line)
 		t.Errorf("Timed out waiting for an event")
 	}
 }
@@ -236,7 +241,6 @@ func TestWatch(t *testing.T) {
 	}
 	defer initialWatcher.Stop()
 
-	verifyWatchEvent(t, initialWatcher, watch.Added, podFoo)
 	verifyWatchEvent(t, initialWatcher, watch.Modified, podFooPrime)
 
 	// Now test watch from "now".
@@ -335,7 +339,6 @@ func TestFiltering(t *testing.T) {
 	}
 	defer watcher.Stop()
 
-	verifyWatchEvent(t, watcher, watch.Added, podFoo)
 	verifyWatchEvent(t, watcher, watch.Deleted, podFooFiltered)
 	verifyWatchEvent(t, watcher, watch.Added, podFoo)
 	verifyWatchEvent(t, watcher, watch.Modified, podFooPrime)
diff --git a/pkg/storage/watch_cache.go b/pkg/storage/watch_cache.go
index 2e842a28e1eb1..87bce0c0e6a3e 100644
--- a/pkg/storage/watch_cache.go
+++ b/pkg/storage/watch_cache.go
@@ -302,14 +302,13 @@ func (w *watchCache) GetAllEventsSinceThreadUnsafe(resourceVersion uint64) ([]wa
 		}
 		return result, nil
 	}
-	if resourceVersion < oldest {
-		return nil, errors.NewGone(fmt.Sprintf("too old resource version: %d (%d)", resourceVersion, oldest))
+	if resourceVersion < oldest-1 {
+		return nil, errors.NewGone(fmt.Sprintf("too old resource version: %d (%d)", resourceVersion, oldest-1))
 	}
 
-	// Binary search the smallest index at which resourceVersion is not smaller than
-	// the given one.
+	// Binary search the smallest index at which resourceVersion is greater than the given one.
 	f := func(i int) bool {
-		return w.cache[(w.startIndex+i)%w.capacity].resourceVersion >= resourceVersion
+		return w.cache[(w.startIndex+i)%w.capacity].resourceVersion > resourceVersion
 	}
 	first := sort.Search(size, f)
 	result := make([]watchCacheEvent, size-first)
diff --git a/pkg/storage/watch_cache_test.go b/pkg/storage/watch_cache_test.go
index e2268fe956d2b..8d9327e3cb762 100644
--- a/pkg/storage/watch_cache_test.go
+++ b/pkg/storage/watch_cache_test.go
@@ -122,7 +122,7 @@ func TestWatchCacheBasic(t *testing.T) {
 func TestEvents(t *testing.T) {
 	store := newTestWatchCache(5)
 
-	store.Add(makeTestPod("pod", 2))
+	store.Add(makeTestPod("pod", 3))
 
 	// Test for Added event.
 	{
@@ -145,7 +145,7 @@ func TestEvents(t *testing.T) {
 		if result[0].Type != watch.Added {
 			t.Errorf("unexpected event type: %v", result[0].Type)
 		}
-		pod := makeTestPod("pod", uint64(2))
+		pod := makeTestPod("pod", uint64(3))
 		if !api.Semantic.DeepEqual(pod, result[0].Object) {
 			t.Errorf("unexpected item: %v, expected: %v", result[0].Object, pod)
 		}
@@ -154,8 +154,8 @@ func TestEvents(t *testing.T) {
 		}
 	}
 
-	store.Update(makeTestPod("pod", 3))
 	store.Update(makeTestPod("pod", 4))
+	store.Update(makeTestPod("pod", 5))
 
 	// Test with not full cache.
 	{
@@ -176,22 +176,22 @@ func TestEvents(t *testing.T) {
 			if result[i].Type != watch.Modified {
 				t.Errorf("unexpected event type: %v", result[i].Type)
 			}
-			pod := makeTestPod("pod", uint64(i+3))
+			pod := makeTestPod("pod", uint64(i+4))
 			if !api.Semantic.DeepEqual(pod, result[i].Object) {
 				t.Errorf("unexpected item: %v, expected: %v", result[i].Object, pod)
 			}
-			prevPod := makeTestPod("pod", uint64(i+2))
+			prevPod := makeTestPod("pod", uint64(i+3))
 			if !api.Semantic.DeepEqual(prevPod, result[i].PrevObject) {
 				t.Errorf("unexpected item: %v, expected: %v", result[i].PrevObject, prevPod)
 			}
 		}
 	}
 
-	for i := 5; i < 9; i++ {
+	for i := 6; i < 10; i++ {
 		store.Update(makeTestPod("pod", uint64(i)))
 	}
 
-	// Test with full cache - there should be elements from 4 to 8.
+	// Test with full cache - there should be elements from 5 to 9.
 	{
 		_, err := store.GetAllEventsSince(3)
 		if err == nil {
@@ -207,7 +207,7 @@ func TestEvents(t *testing.T) {
 			t.Fatalf("unexpected events: %v", result)
 		}
 		for i := 0; i < 5; i++ {
-			pod := makeTestPod("pod", uint64(i+4))
+			pod := makeTestPod("pod", uint64(i+5))
 			if !api.Semantic.DeepEqual(pod, result[i].Object) {
 				t.Errorf("unexpected item: %v, expected: %v", result[i].Object, pod)
 			}
@@ -215,7 +215,7 @@ func TestEvents(t *testing.T) {
 	}
 
 	// Test for delete event.
-	store.Delete(makeTestPod("pod", uint64(9)))
+	store.Delete(makeTestPod("pod", uint64(10)))
 
 	{
 		result, err := store.GetAllEventsSince(9)
@@ -228,11 +228,11 @@ func TestEvents(t *testing.T) {
 		if result[0].Type != watch.Deleted {
 			t.Errorf("unexpected event type: %v", result[0].Type)
 		}
-		pod := makeTestPod("pod", uint64(9))
+		pod := makeTestPod("pod", uint64(10))
 		if !api.Semantic.DeepEqual(pod, result[0].Object) {
 			t.Errorf("unexpected item: %v, expected: %v", result[0].Object, pod)
 		}
-		prevPod := makeTestPod("pod", uint64(8))
+		prevPod := makeTestPod("pod", uint64(9))
 		if !api.Semantic.DeepEqual(prevPod, result[0].PrevObject) {
 			t.Errorf("unexpected item: %v, expected: %v", result[0].PrevObject, prevPod)
 		}