diff --git a/sugar/activity/bundlebuilder.py b/sugar/activity/bundlebuilder.py
index 49c93893..6086de3b 100644
--- a/sugar/activity/bundlebuilder.py
+++ b/sugar/activity/bundlebuilder.py
@@ -60,7 +60,9 @@ class _ManifestFileList(list):
 
         f = open(manifest,'r')
         for line in f.readlines():
-            self.append(line[:-1])
+            stripped_line = line.strip()
+            if stripped_line:
+                self.append(stripped_line)
         f.close()
 
         defaults = _DefaultFileList()
diff --git a/tools/build-snapshot.sh b/tools/build-snapshot.sh
index 2c93bde9..0c35d365 100755
--- a/tools/build-snapshot.sh
+++ b/tools/build-snapshot.sh
@@ -1,6 +1,6 @@
 VERSION=0.63
 DATE=`date +%Y%m%d`
-RELEASE=2.60
+RELEASE=2.61
 TARBALL=sugar-$VERSION-$RELEASE.${DATE}git.tar.bz2
 
 rm sugar-$VERSION.tar.bz2