diff --git a/tracks/app/controllers/application.rb b/tracks/app/controllers/application.rb
index dfc70269..78773ff7 100644
--- a/tracks/app/controllers/application.rb
+++ b/tracks/app/controllers/application.rb
@@ -92,11 +92,12 @@ class ApplicationController < ActionController::Base
     init_not_done_counts
   end
   
-  # TODO: Need to exclude hidden projects from this count
   def init_not_done_counts(parents = ['project','context'])
     parents.each do |parent|
       eval("@#{parent}_not_done_counts = Todo.count(:all,
-                                            :conditions => ['user_id = ? and type = ? and done = ?', @user.id, \"Immediate\", false],
+                                            :conditions => ['todos.user_id = ? and todos.type = ? and todos.done = ? and (projects.state != ? or todos.project_id is ?)',
+                                                            @user.id, \"Immediate\", false, \"hidden\", nil],
+                                            :joins => 'LEFT JOIN projects on projects.id = todos.project_id',
                                             :group => :#{parent}_id)")
     end
   end  
diff --git a/tracks/test/functional/todo_controller_test.rb b/tracks/test/functional/todo_controller_test.rb
index 4df85ecb..a560eed2 100644
--- a/tracks/test/functional/todo_controller_test.rb
+++ b/tracks/test/functional/todo_controller_test.rb
@@ -5,6 +5,8 @@ require 'todo_controller'
 class TodoController; def rescue_action(e) raise e end; end
 
 class TodoControllerTest < Test::Unit::TestCase
+  fixtures :users, :preferences, :projects, :contexts, :todos
+  
   def setup
     @controller = TodoController.new
     @request, @response = ActionController::TestRequest.new, ActionController::TestResponse.new
@@ -17,4 +19,23 @@ class TodoControllerTest < Test::Unit::TestCase
     assert_redirected_to :controller => 'login', :action => 'login'
   end
 
+  def test_not_done_counts
+    @request.session['user_id'] = users(:admin_user).id
+    get :index
+    assert_equal 2, assigns['project_not_done_counts'][projects(:timemachine).id]
+    assert_equal 3, assigns['context_not_done_counts'][contexts(:call).id]
+    assert_equal 1, assigns['context_not_done_counts'][contexts(:lab).id]
+  end
+
+  def test_not_done_counts_after_hiding_project
+    p = Project.find(1)
+    p.hide!
+    p.save!
+    @request.session['user_id'] = users(:admin_user).id
+    get :index
+    assert_equal nil, assigns['project_not_done_counts'][projects(:timemachine).id]
+    assert_equal 2, assigns['context_not_done_counts'][contexts(:call).id]
+    assert_equal nil, assigns['context_not_done_counts'][contexts(:lab).id]
+  end
+
 end