diff --git a/chapter01/changelog.xml b/chapter01/changelog.xml
index 8fb308ab8..aea99983f 100644
--- a/chapter01/changelog.xml
+++ b/chapter01/changelog.xml
@@ -36,6 +36,16 @@
     </listitem>
 -->
 
+    <listitem>
+      <para>2007-01-31</para>
+      <itemizedlist>
+        <listitem>
+          <para>[matthew] - Upgrade to Bzip2-1.0.4.  Fixes
+          <ulink url="&lfs-ticket-root;1943">#1943</ulink>.</para>
+        </listitem>
+      </itemizedlist>
+    </listitem>
+
     <listitem>
       <para>2007-01-13</para>
       <itemizedlist>
diff --git a/chapter01/whatsnew.xml b/chapter01/whatsnew.xml
index ed1f7239a..6ce58f747 100644
--- a/chapter01/whatsnew.xml
+++ b/chapter01/whatsnew.xml
@@ -40,9 +40,9 @@
     <listitem>
       <para>Bison &bison-version;</para>
     </listitem>
-    <!--<listitem>
+    <listitem>
       <para>Bzip2 &bzip2-version;</para>
-    </listitem>-->
+    </listitem>
     <listitem>
       <para>Coreutils &coreutils-version;</para>
     </listitem>
diff --git a/chapter03/patches.xml b/chapter03/patches.xml
index 5bc3bbb7e..4512538dd 100644
--- a/chapter03/patches.xml
+++ b/chapter03/patches.xml
@@ -26,14 +26,6 @@
       </listitem>
     </varlistentry>
 
-    <varlistentry>
-      <term>Bzip2 Bzgrep Security Fixes Patch - <token>&bzip2-bzgrep-patch-size;</token>:</term>
-      <listitem>
-        <para>Download: <ulink url="&patches-root;&bzip2-bzgrep-patch;"/></para>
-        <para>MD5 sum: <literal>&bzip2-bzgrep-patch-md5;</literal></para>
-      </listitem>
-    </varlistentry>
-
     <varlistentry>
       <term>Bzip2 Documentation Patch - <token>&bzip2-docs-patch-size;</token>:</term>
       <listitem>
diff --git a/chapter06/bzip2.xml b/chapter06/bzip2.xml
index 69d4d9b12..d3fa46c49 100644
--- a/chapter06/bzip2.xml
+++ b/chapter06/bzip2.xml
@@ -41,19 +41,6 @@
 
 <screen><userinput>patch -Np1 -i ../&bzip2-docs-patch;</userinput></screen>
 
-    <para>The <command>bzgrep</command> command does not escape '|' and '&amp;'
-    in filenames passed to it. This allows arbitrary commands to be executed
-    with the privileges of the user running <command>bzgrep</command>. Apply
-    the following to address this:</para>
-
-<screen><userinput>patch -Np1 -i ../&bzip2-bzgrep-patch;</userinput></screen>
-
-    <para>The <command>bzdiff</command> script still uses the deprecated
-    <command>tempfile</command> program. Update it to use
-    <command>mktemp</command> instead:</para>
-
-<screen><userinput>sed -i 's@tempfile -d /tmp -p bz@mktemp -p /tmp@' bzdiff</userinput></screen>
-
     <para>Prepare Bzip2 for compilation with:</para>
 
 <screen><userinput>make -f Makefile-libbz2_so
@@ -85,7 +72,7 @@ make clean</userinput></screen>
 
     <para>Install the programs:</para>
 
-<screen><userinput>make install</userinput></screen>
+<screen><userinput>make PREFIX=/usr install</userinput></screen>
 
     <para>Install the shared <command>bzip2</command> binary into the
     <filename class="directory">/bin</filename> directory, make
diff --git a/general.ent b/general.ent
index f62b850e0..aa9c4e04c 100644
--- a/general.ent
+++ b/general.ent
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="ISO-8859-1"?>
-<!ENTITY version "SVN-20070130">
-<!ENTITY releasedate "January 30, 2007">
+<!ENTITY version "SVN-20070131">
+<!ENTITY releasedate "January 31, 2007">
 <!ENTITY milestone "6.3">
 <!ENTITY generic-version "development"> <!-- Use "development", "testing", or "x.y[-pre{x}]" -->
 
diff --git a/packages.ent b/packages.ent
index 28c5ddaf9..5900a1975 100644
--- a/packages.ent
+++ b/packages.ent
@@ -62,10 +62,10 @@
 <!ENTITY bison-ch6-du "12.3 MB">
 <!ENTITY bison-ch6-sbu "0.2 SBU">
 
-<!ENTITY bzip2-version "1.0.3">
-<!ENTITY bzip2-size "654 KB">
+<!ENTITY bzip2-version "1.0.4">
+<!ENTITY bzip2-size "822 KB">
 <!ENTITY bzip2-url "http://www.bzip.org/&bzip2-version;/bzip2-&bzip2-version;.tar.gz">
-<!ENTITY bzip2-md5 "8a716bebecb6e647d2e8a29ea5d8447f">
+<!ENTITY bzip2-md5 "fc310b254f6ba5fbb5da018f04533688">
 <!ENTITY bzip2-home "http://www.bzip.org/">
 <!ENTITY bzip2-ch5-du "4.2 MB">
 <!ENTITY bzip2-ch5-sbu "less than 0.1 SBU">
diff --git a/patches.ent b/patches.ent
index 8f0d67ab1..6662b37ce 100644
--- a/patches.ent
+++ b/patches.ent
@@ -6,12 +6,8 @@
 <!ENTITY bash-fixes-patch-size "9.9 KB">
 
 
-<!ENTITY bzip2-bzgrep-patch "bzip2-&bzip2-version;-bzgrep_security-1.patch">
-<!ENTITY bzip2-bzgrep-patch-md5 "4eae50e4fd690498f23d3057dfad7066">
-<!ENTITY bzip2-bzgrep-patch-size "1.2 KB">
-
 <!ENTITY bzip2-docs-patch "bzip2-&bzip2-version;-install_docs-1.patch">
-<!ENTITY bzip2-docs-patch-md5 "9e5dfbf4814b71ef986b872c9af84488">
+<!ENTITY bzip2-docs-patch-md5 "6a5ac7e89b791aae556de0f745916f7f">
 <!ENTITY bzip2-docs-patch-size "1.6 KB">