diff --git a/plogical/DockerSites.py b/plogical/DockerSites.py
index 81a8c8e29..3b6061cf9 100644
--- a/plogical/DockerSites.py
+++ b/plogical/DockerSites.py
@@ -782,36 +782,14 @@ services:
 
     def setup_n8n_data_directory(self):
         """Helper method to create and set up n8n data directory with proper permissions"""
-        # Create all required n8n directories
+        # Create base n8n data directory
         base_dir = f"/home/docker/{self.data['finalURL']}/n8n_data"
-        required_dirs = [
-            f"{base_dir}",
-            f"{base_dir}/.n8n",
-            f"{base_dir}/.n8n/.n8n",  # Additional nested directory required by n8n
-            f"{base_dir}/.n8n/data",
-            f"{base_dir}/.n8n/config"
-        ]
-
-        # Create directories
-        for directory in required_dirs:
-            command = f"mkdir -p {directory}"
-            ProcessUtilities.executioner(command)
-
-        # Set proper ownership for n8n data directory and all subdirectories
-        command = f"chown -R 1000:1000 {base_dir}"
-        ProcessUtilities.executioner(command)
-
-        # Set proper permissions
-        # 755 for directories to allow n8n to read/write/execute
-        command = f"find {base_dir} -type d -exec chmod 755 {{}} \\;"
-        ProcessUtilities.executioner(command)
-
-        # 644 for files to allow n8n to read/write
-        command = f"find {base_dir} -type f -exec chmod 644 {{}} \\;"
+        command = f"mkdir -p {base_dir}"
         ProcessUtilities.executioner(command)
 
         # Generate encryption key
         encryption_key = f"auto_generated_key_{randomPassword.generate_pass(32)}"
+        self.data['N8N_ENCRYPTION_KEY'] = encryption_key
 
         # Create n8n config with the encryption key
         config_content = {
@@ -819,9 +797,15 @@ services:
             "instanceId": f"n8n_{randomPassword.generate_pass(12)}",
             "nodes": {},
             "credentials": {},
-            "settings": {},
+            "settings": {
+                "instanceId": f"n8n_{randomPassword.generate_pass(12)}",
+                "tunnelSubdomain": None,
+                "deployment": "default"
+            },
             "versionNotifications": {
-                "enabled": False
+                "enabled": False,
+                "endpoint": "https://api.n8n.io/api/v1/versions/notifications.json",
+                "infoUrl": "https://docs.n8n.io/reference/release-notes.html"
             }
         }
 
@@ -830,19 +814,47 @@ services:
         with open(temp_config, 'w') as f:
             json.dump(config_content, f, indent=2)
 
-        # Move config to final location with proper permissions
-        config_file = f"{base_dir}/.n8n/config/config.json"
+        # Create necessary directories with proper permissions
+        required_dirs = [
+            f"{base_dir}/.n8n",
+            f"{base_dir}/.n8n/config"
+        ]
+
+        for directory in required_dirs:
+            command = f"mkdir -p {directory}"
+            ProcessUtilities.executioner(command)
+
+        # Move config to final location
+        config_file = f"{base_dir}/.n8n/config/config"
         command = f"mv {temp_config} {config_file}"
         ProcessUtilities.executioner(command)
 
-        command = f"chown 1000:1000 {config_file}"
+        # Set ownership recursively
+        command = f"chown -R 1000:1000 {base_dir}"
         ProcessUtilities.executioner(command)
 
-        command = f"chmod 644 {config_file}"
+        # Set directory permissions
+        command = f"find {base_dir} -type d -exec chmod 755 {{}} \\;"
         ProcessUtilities.executioner(command)
 
-        # Store encryption key for use in container environment
-        self.data['N8N_ENCRYPTION_KEY'] = encryption_key
+        # Set file permissions
+        command = f"find {base_dir} -type f -exec chmod 644 {{}} \\;"
+        ProcessUtilities.executioner(command)
+
+        # Create empty directories that n8n expects
+        additional_dirs = [
+            f"{base_dir}/.n8n/database",
+            f"{base_dir}/.n8n/workflows",
+            f"{base_dir}/.n8n/credentials"
+        ]
+
+        for directory in additional_dirs:
+            command = f"mkdir -p {directory}"
+            ProcessUtilities.executioner(command)
+            command = f"chown 1000:1000 {directory}"
+            ProcessUtilities.executioner(command)
+            command = f"chmod 755 {directory}"
+            ProcessUtilities.executioner(command)
 
     def DeployN8NContainer(self):
         try: