diff --git a/GPy/core/model.py b/GPy/core/model.py
index 5e030efc..05375b2a 100644
--- a/GPy/core/model.py
+++ b/GPy/core/model.py
@@ -237,7 +237,7 @@ class Model(Parameterised):
         try:
             self._set_params_transformed(x)
             self._fail_count = 0
-        except (LinAlgError, ZeroDivisionError) as e:
+        except (LinAlgError, ZeroDivisionError, ValueError) as e:
             if self._fail_count >= self._allowed_failures:
                 raise e
             self._fail_count += 1
@@ -255,7 +255,7 @@ class Model(Parameterised):
         try:
             self._set_params_transformed(x)
             self._fail_count = 0
-        except (LinAlgError, ZeroDivisionError) as e:
+        except (LinAlgError, ZeroDivisionError, ValueError) as e:
             if self._fail_count >= self._allowed_failures:
                 raise e
             self._fail_count += 1
@@ -267,7 +267,7 @@ class Model(Parameterised):
             self._set_params_transformed(x)
             obj_f = -self.log_likelihood() - self.log_prior()
             self._fail_count = 0
-        except (LinAlgError, ZeroDivisionError) as e:
+        except (LinAlgError, ZeroDivisionError, ValueError) as e:
             if self._fail_count >= self._allowed_failures:
                 raise e
             self._fail_count += 1
diff --git a/GPy/examples/dimensionality_reduction.py b/GPy/examples/dimensionality_reduction.py
index 68dfe3ec..28ee2bde 100644
--- a/GPy/examples/dimensionality_reduction.py
+++ b/GPy/examples/dimensionality_reduction.py
@@ -2,7 +2,7 @@
 # Licensed under the BSD 3-clause license (see LICENSE.txt)
 
 import numpy as np
-from matplotlib import pyplot as plt
+from matplotlib import pyplot as plt, cm
 
 import GPy
 from GPy.core.transformations import logexp
@@ -182,7 +182,7 @@ def _simulate_sincos(D1, D2, D3, N, num_inducing, Q, plot_sim=False):
     sS = sS(x)
 
     S1 = np.hstack([s1, sS])
-    S2 = np.hstack([s2, sS])
+    S2 = np.hstack([s2, s3, sS])
     S3 = np.hstack([s3, sS])
 
     Y1 = S1.dot(np.random.randn(S1.shape[1], D1))
@@ -216,7 +216,7 @@ def _simulate_sincos(D1, D2, D3, N, num_inducing, Q, plot_sim=False):
         ax.legend()
         for i, Y in enumerate(Ylist):
             ax = fig.add_subplot(2, len(Ylist), len(Ylist) + 1 + i)
-            ax.imshow(Y)
+            ax.imshow(Y, aspect='auto', cmap=cm.gray) # @UndefinedVariable
             ax.set_title("Y{}".format(i + 1))
         pylab.draw()
         pylab.tight_layout()
@@ -298,7 +298,7 @@ def mrd_simulation(optimize=True, plot=True, plot_sim=True, **kw):
 
     if optimize:
         print "Optimizing Model:"
-        m.optimize('scg', messages=1, max_iters=8e3, max_f_eval=8e3, gtol=.1)
+        m.optimize(messages=1, max_iters=8e3, max_f_eval=8e3, gtol=.1)
     if plot:
         m.plot_X_1d("MRD Latent Space 1D")
         m.plot_scales("MRD Scales")
diff --git a/GPy/util/visualize.py b/GPy/util/visualize.py
index 8fa9a6ba..11730704 100644
--- a/GPy/util/visualize.py
+++ b/GPy/util/visualize.py
@@ -193,7 +193,7 @@ class lvm_dimselect(lvm):
     GPy.examples.dimensionality_reduction.BGPVLM_oil()
 
     """
-    def __init__(self, vals, Model, data_visualize, latent_axes=None, sense_axes=None, latent_index=[0, 1]):
+    def __init__(self, vals, Model, data_visualize, latent_axes=None, sense_axes=None, latent_index=[0, 1], labels=None):
         if latent_axes==None and sense_axes==None:
             self.fig,(latent_axes,self.sense_axes) = plt.subplots(1,2)
         elif sense_axes==None:
@@ -201,7 +201,7 @@ class lvm_dimselect(lvm):
             self.sense_axes = fig.add_subplot(111)
         else:
             self.sense_axes = sense_axes
-        
+        self.labels = labels
         lvm.__init__(self,vals,Model,data_visualize,latent_axes,sense_axes,latent_index)
         print "use left and right mouse butons to select dimensions"
 
@@ -221,7 +221,7 @@ class lvm_dimselect(lvm):
 
             self.latent_axes.cla()
             self.Model.plot_latent(which_indices=self.latent_index,
-                                   ax=self.latent_axes)
+                                   ax=self.latent_axes, labels=self.labels)
             self.latent_handle = self.latent_axes.plot([0],[0],'rx',mew=2)[0]
             self.modify(self.latent_values)