diff --git a/PC/VC6/bz2.dsp b/PC/VC6/bz2.dsp
index 3c164fa957d..352cbad59d0 100644
--- a/PC/VC6/bz2.dsp
+++ b/PC/VC6/bz2.dsp
@@ -44,7 +44,7 @@ RSC=rc.exe
 # PROP Target_Dir ""
 F90=df.exe
 # ADD BASE CPP /nologo /MT /W3 /GX /O2 /D "Py_BUILD_CORE_MODULE" /D "WIN32" /D "NDEBUG" /D "_WINDOWS" /YX /FD /c
-# ADD CPP /nologo /MD /W3 /GX /Zi /O2 /I "..\..\Include" /I ".." /I "..\..\..\bzip2-1.0.5" /D "Py_BUILD_CORE_MODULE" /D "NDEBUG" /D "WIN32" /D "_WINDOWS" /YX /FD /c
+# ADD CPP /nologo /MD /W3 /GX /Zi /O2 /I "..\..\Include" /I ".." /I "..\..\..\bzip2-1.0.6" /D "Py_BUILD_CORE_MODULE" /D "NDEBUG" /D "WIN32" /D "_WINDOWS" /YX /FD /c
 # ADD BASE MTL /nologo /D "NDEBUG" /mktyplib203 /o "NUL" /win32
 # ADD MTL /nologo /D "NDEBUG" /mktyplib203 /o "NUL" /win32
 # ADD BASE RSC /l 0x409 /d "NDEBUG"
@@ -54,7 +54,7 @@ BSC32=bscmake.exe
 # ADD BSC32 /nologo
 LINK32=link.exe
 # ADD BASE LINK32 kernel32.lib user32.lib gdi32.lib winspool.lib comdlg32.lib advapi32.lib shell32.lib ole32.lib oleaut32.lib uuid.lib odbc32.lib odbccp32.lib /nologo /subsystem:windows /dll /machine:I386
-# ADD LINK32 ..\..\..\bzip2-1.0.5\libbz2.lib /nologo /base:"0x1D170000" /subsystem:windows /dll /debug /machine:I386 /nodefaultlib:"libc" /out:"./bz2.pyd"
+# ADD LINK32 ..\..\..\bzip2-1.0.6\libbz2.lib /nologo /base:"0x1D170000" /subsystem:windows /dll /debug /machine:I386 /nodefaultlib:"libc" /out:"./bz2.pyd"
 # SUBTRACT LINK32 /pdb:none /nodefaultlib
 
 !ELSEIF  "$(CFG)" == "bz2 - Win32 Debug"
@@ -72,7 +72,7 @@ LINK32=link.exe
 # PROP Target_Dir ""
 F90=df.exe
 # ADD BASE CPP /nologo /MTd /W3 /Gm /GX /Zi /Od /D "Py_BUILD_CORE_MODULE" /D "WIN32" /D "_DEBUG" /D "_WINDOWS" /YX /FD /c
-# ADD CPP /nologo /MDd /W3 /Gm /GX /Zi /Od /I "..\..\Include" /I ".." /I "..\..\..\bzip2-1.0.5" /D "Py_BUILD_CORE_MODULE" /D "_DEBUG" /D "WIN32" /D "_WINDOWS" /YX /FD /c
+# ADD CPP /nologo /MDd /W3 /Gm /GX /Zi /Od /I "..\..\Include" /I ".." /I "..\..\..\bzip2-1.0.6" /D "Py_BUILD_CORE_MODULE" /D "_DEBUG" /D "WIN32" /D "_WINDOWS" /YX /FD /c
 # ADD BASE MTL /nologo /D "_DEBUG" /mktyplib203 /o "NUL" /win32
 # ADD MTL /nologo /D "_DEBUG" /mktyplib203 /o "NUL" /win32
 # ADD BASE RSC /l 0x409 /d "_DEBUG"
@@ -82,7 +82,7 @@ BSC32=bscmake.exe
 # ADD BSC32 /nologo
 LINK32=link.exe
 # ADD BASE LINK32 kernel32.lib user32.lib gdi32.lib winspool.lib comdlg32.lib advapi32.lib shell32.lib ole32.lib oleaut32.lib uuid.lib odbc32.lib odbccp32.lib /nologo /subsystem:windows /dll /debug /machine:I386 /pdbtype:sept
-# ADD LINK32 ..\..\..\bzip2-1.0.5\libbz2.lib /nologo /base:"0x1D170000" /subsystem:windows /dll /debug /machine:I386 /nodefaultlib:"msvcrt" /nodefaultlib:"libc" /out:"./bz2_d.pyd" /pdbtype:sept
+# ADD LINK32 ..\..\..\bzip2-1.0.6\libbz2.lib /nologo /base:"0x1D170000" /subsystem:windows /dll /debug /machine:I386 /nodefaultlib:"msvcrt" /nodefaultlib:"libc" /out:"./bz2_d.pyd" /pdbtype:sept
 # SUBTRACT LINK32 /pdb:none
 
 !ENDIF 
diff --git a/PC/VC6/readme.txt b/PC/VC6/readme.txt
index a6835276b2c..98d1e495e5b 100644
--- a/PC/VC6/readme.txt
+++ b/PC/VC6/readme.txt
@@ -120,14 +120,14 @@ bz2
     Download the source from the python.org copy into the dist
     directory:
 
-    svn export http://svn.python.org/projects/external/bzip2-1.0.5
+    svn export http://svn.python.org/projects/external/bzip2-1.0.6
 
     And requires building bz2 first.
 
-    cd dist\bzip2-1.0.5
+    cd dist\bzip2-1.0.6
     nmake -f makefile.msc
 
-    All of this managed to build bzip2-1.0.5\libbz2.lib, which the Python
+    All of this managed to build bzip2-1.0.6\libbz2.lib, which the Python
     project links in.
 
 
diff --git a/PC/VS8.0/pyproject.vsprops b/PC/VS8.0/pyproject.vsprops
index 4a582f1716f..7c53bba2b13 100644
--- a/PC/VS8.0/pyproject.vsprops
+++ b/PC/VS8.0/pyproject.vsprops
@@ -54,7 +54,7 @@
 	/>
 	<UserMacro
 		Name="bz2Dir"
-		Value="$(externalsDir)\bzip2-1.0.5"
+		Value="$(externalsDir)\bzip2-1.0.6"
 	/>
 	<UserMacro
 		Name="opensslDir"
diff --git a/PC/VS9.0/pyproject.vsprops b/PC/VS9.0/pyproject.vsprops
index 441f95f3dc6..20fbcd88110 100644
--- a/PC/VS9.0/pyproject.vsprops
+++ b/PC/VS9.0/pyproject.vsprops
@@ -54,7 +54,7 @@
 	/>
 	<UserMacro
 		Name="bz2Dir"
-		Value="$(externalsDir)\bzip2-1.0.5"
+		Value="$(externalsDir)\bzip2-1.0.6"
 	/>
 	<UserMacro
 		Name="lzmaDir"
diff --git a/PCbuild/pyproject.props b/PCbuild/pyproject.props
index 4b7081c960c..fb4efbb106b 100644
--- a/PCbuild/pyproject.props
+++ b/PCbuild/pyproject.props
@@ -5,7 +5,7 @@
     <PythonExe>$(SolutionDir)\python.exe</PythonExe>
     <externalsDir>..\..</externalsDir>
     <sqlite3Dir>$(externalsDir)\sqlite-3.7.4</sqlite3Dir>
-    <bz2Dir>$(externalsDir)\bzip2-1.0.5</bz2Dir>
+    <bz2Dir>$(externalsDir)\bzip2-1.0.6</bz2Dir>
     <lzmaDir>$(externalsDir)\xz-5.0.3</lzmaDir>
     <opensslDir>$(externalsDir)\openssl-1.0.0a</opensslDir>
     <tcltkDir>$(externalsDir)\tcltk</tcltkDir>
diff --git a/PCbuild/readme.txt b/PCbuild/readme.txt
index 2146221b1d7..9a33d947194 100644
--- a/PCbuild/readme.txt
+++ b/PCbuild/readme.txt
@@ -121,21 +121,21 @@ _bz2
     Download the source from the python.org copy into the dist
     directory:
 
-    svn export http://svn.python.org/projects/external/bzip2-1.0.5
+    svn export http://svn.python.org/projects/external/bzip2-1.0.6
 
     ** NOTE: if you use the Tools\buildbot\external(-amd64).bat approach for
     obtaining external sources then you don't need to manually get the source
     above via subversion. **
 
     A custom pre-link step in the bz2 project settings should manage to
-    build bzip2-1.0.5\libbz2.lib by magic before bz2.pyd (or bz2_d.pyd) is
+    build bzip2-1.0.6\libbz2.lib by magic before bz2.pyd (or bz2_d.pyd) is
     linked in PCbuild\.
     However, the bz2 project is not smart enough to remove anything under
-    bzip2-1.0.5\ when you do a clean, so if you want to rebuild bzip2.lib
-    you need to clean up bzip2-1.0.5\ by hand.
+    bzip2-1.0.6\ when you do a clean, so if you want to rebuild bzip2.lib
+    you need to clean up bzip2-1.0.6\ by hand.
 
     All of this managed to build libbz2.lib in 
-    bzip2-1.0.5\$platform-$configuration\, which the Python project links in.
+    bzip2-1.0.6\$platform-$configuration\, which the Python project links in.
 _lzma
     Python wrapper for the liblzma compression library.
 
diff --git a/README b/README
index 1844375dd0f..4a30bde0751 100644
--- a/README
+++ b/README
@@ -15,6 +15,8 @@ Build Instructions
 
 On Unix, Linux, BSD, OSX, and Cygwin:
 
+New text
+
     ./configure
     make
     make test
diff --git a/Tools/buildbot/external-common.bat b/Tools/buildbot/external-common.bat
index 118871cfceb..8028db881ae 100644
--- a/Tools/buildbot/external-common.bat
+++ b/Tools/buildbot/external-common.bat
@@ -4,7 +4,7 @@
 cd ..
 @rem XXX: If you need to force the buildbots to start from a fresh environment, uncomment
 @rem the following, check it in, then check it out, comment it out, then check it back in.
-@rem if exist bzip2-1.0.5 rd /s/q bzip2-1.0.5
+@rem if exist bzip2-1.0.6 rd /s/q bzip2-1.0.6
 @rem if exist tcltk rd /s/q tcltk
 @rem if exist tcltk64 rd /s/q tcltk64
 @rem if exist tcl8.4.12 rd /s/q tcl8.4.12
@@ -18,9 +18,9 @@ cd ..
 @rem if exist sqlite-3.7.4 rd /s/q sqlite-3.7.4    
 
 @rem bzip
-if not exist bzip2-1.0.5 (
-   rd /s/q bzip2-1.0.3
-  svn export http://svn.python.org/projects/external/bzip2-1.0.5
+if not exist bzip2-1.0.6 (
+   rd /s/q bzip2-1.0.5
+  svn export http://svn.python.org/projects/external/bzip2-1.0.6
 )
 
 @rem Sleepycat db