diff --git a/src/compiler/tsc.ts b/src/compiler/tsc.ts
index e5b85a7391e..9f68809c389 100644
--- a/src/compiler/tsc.ts
+++ b/src/compiler/tsc.ts
@@ -710,16 +710,19 @@ namespace ts {
         else {
             const compilerOptions = extend(options, defaultInitCompilerOptions);
             const configurations: any = {
-                compilerOptions: serializeCompilerOptions(compilerOptions)
+                compilerOptions: serializeCompilerOptions(compilerOptions)
             };
 
             if (fileNames && fileNames.length) {
                 // only set the files property if we have at least one file
                 configurations.files = fileNames;
             }
-            else {
-                configurations.exclude = ["node_modules"];
-            }
+            else {
+                configurations.exclude = ["node_modules"];
+                if (compilerOptions.outDir) {
+                    configurations.exclude.push(compilerOptions.outDir);
+                }
+            }
 
             sys.writeFile(file, JSON.stringify(configurations, undefined, 4));
             reportDiagnostic(createCompilerDiagnostic(Diagnostics.Successfully_created_a_tsconfig_json_file), /* compilerHost */ undefined);
diff --git a/src/server/protocol.d.ts b/src/server/protocol.d.ts
index 3a669753323..b8207570ea2 100644
--- a/src/server/protocol.d.ts
+++ b/src/server/protocol.d.ts
@@ -469,7 +469,7 @@ declare namespace ts.server.protocol {
         placeOpenBraceOnNewLineForControlBlocks?: boolean;
 
         /** Index operator */
-        [key: string] : string | number | boolean;
+        [key: string]: string | number | boolean;
     }
 
     /**