diff --git a/src/standard/configure.html b/src/standard/configure.html
index 7a6210a96c..39e7158f71 100644
--- a/src/standard/configure.html
+++ b/src/standard/configure.html
@@ -45,7 +45,13 @@
 
     // storage for configuration
     _setupConfigure: function(initialConfig) {
-      this._config = initialConfig || {};
+      this._config = {};
+      // don't accept undefined values in intialConfig
+      for (var i in initialConfig) {
+        if (initialConfig[i] !== undefined) {
+          this._config[i] = initialConfig[i];    
+        }
+      }
       this._handlers = [];
     },
 
@@ -92,6 +98,7 @@
     _configureProperties: function(properties, config) {
       for (var i in properties) {
         var c = properties[i];
+        // don't accept undefined values
         if (c.value !== undefined) {
           var value = c.value;
           if (typeof value == 'function') {
diff --git a/test/smoke/bind-smoke2.html b/test/smoke/bind-smoke2.html
new file mode 100644
index 0000000000..ff83d5ccbb
--- /dev/null
+++ b/test/smoke/bind-smoke2.html
@@ -0,0 +1,68 @@
+<!doctype html>
+<!--
+@license
+Copyright (c) 2014 The Polymer Project Authors. All rights reserved.
+This code may only be used under the BSD style license found at http://polymer.github.io/LICENSE.txt
+The complete set of authors may be found at http://polymer.github.io/AUTHORS.txt
+The complete set of contributors may be found at http://polymer.github.io/CONTRIBUTORS.txt
+Code distributed by Google as part of the polymer project is also
+subject to an additional IP rights grant found at http://polymer.github.io/PATENTS.txt
+-->
+<link rel="import" href="../../polymer.html">
+
+<body>
+  
+  <dom-module is="data-source">
+    <template>
+      <span>{{prop}}</span>
+      <span>{{data.length}}</span>: length
+      <br>
+      
+      <template is="dom-repeat" items="{{data}}">
+        <span>{{item}}</span>
+      </template>:items
+    </template>
+  </dom-module>
+  
+  
+  <script>
+      Polymer({
+        is: 'data-source',
+        
+        properties: {
+          data: {
+            //readOnly: true,
+            notify: true,
+            type: Array,
+            value: [1, 2, 3]
+          },
+          
+          prop: {
+            readOnly: true,
+            notify: true,
+            type: String,
+            value: 'foo'
+          }
+        }
+      });
+  </script>  
+  
+  
+  <template is="dom-bind">
+    
+    <h1>Element</h1>
+    <data-source data="{{data}}" prop="{{prop}}"></data-source>
+    
+    <h1>Databound</h1>
+    
+    <span>{{prop}}</span>
+
+    <template is="dom-repeat" items="{{data}}">
+      <span>{{item}}</span>
+    </template>
+    
+  </template>
+  
+
+  
+</body>
diff --git a/test/unit/dom-bind-elements1.html b/test/unit/dom-bind-elements1.html
index 0696569900..ce7c350808 100644
--- a/test/unit/dom-bind-elements1.html
+++ b/test/unit/dom-bind-elements1.html
@@ -7,4 +7,16 @@
       }
     }
   });
+</script>
+
+<script>
+  Polymer({
+    is: 'x-produce-a',
+    properties: {
+      a: {
+        notify: true,
+        value: 'a'
+      }
+    }
+  });
 </script>
\ No newline at end of file
diff --git a/test/unit/dom-bind.html b/test/unit/dom-bind.html
index 2e7c2a6dd8..d6bdcdb86f 100644
--- a/test/unit/dom-bind.html
+++ b/test/unit/dom-bind.html
@@ -30,6 +30,8 @@
   <template is="dom-bind" id="decDomBind">
     <x-basic id="decEl1" value="{{value}}" notifyingvalue="{{nvalue}}" on-custom="handleEvent" computed="{{compute(dep)}}"></x-basic>
     <x-basic id="decEl2" value="{{value}}" notifyingvalue="{{nvalue}}"></x-basic>
+    <x-produce-a a={{z}}></x-produce-a>
+    <div id="z">{{z}}</div>
   </template>
 
   <div id="container">
@@ -90,6 +92,11 @@
         assert.equal(el1.computed, 50);
       });
 
+      test('initial value notifies to dom-bind', function() {
+        assert.equal(domBind.z, 'a');
+        assert.equal(z.textContent, 'a');
+      });
+
     });
 
     suite('imperative dom-bind', function() {
