diff -r 932de36903e7 Lib/netrc.py
--- a/Lib/netrc.py	Tue May 17 13:22:30 2011 +0200
+++ b/Lib/netrc.py	Tue May 17 17:28:18 2011 +0300
@@ -41,8 +41,11 @@
             if not tt:
                 break
             elif tt[0] == '#':
-                fp.readline();
-                continue;
+                # seek the beginning of the comment
+                pos = len(tt) + 1
+                lexer.instream.seek(-pos, 1)
+                lexer.instream.readline()
+                continue
             elif tt == 'machine':
                 entryname = lexer.get_token()
             elif tt == 'default':
@@ -68,7 +71,7 @@
             self.hosts[entryname] = {}
             while 1:
                 tt = lexer.get_token()
-                if (tt=='' or tt == 'machine' or
+                if (tt=='' or tt == 'machine' or tt[0] == "#" or
                     tt == 'default' or tt =='macdef'):
                     if password:
                         self.hosts[entryname] = (login, account, password)
diff -r 932de36903e7 Lib/test/test_netrc.py
--- a/Lib/test/test_netrc.py	Tue May 17 13:22:30 2011 +0200
+++ b/Lib/test/test_netrc.py	Tue May 17 17:28:18 2011 +0300
@@ -21,6 +21,16 @@
 
 default login log2 password pass2
 
+machine host.domain.com login username password somet#hing
+
+# comment1
+machine host2.domain.com login username2 password something2 #comment at end
+
+#comment2
+machine host3.domain.com login username3 password something3 # comment at end with space
+
+#
+machine host4.domain.com login username4 password something4
 """
 
 temp_filename = test_support.TESTFN
@@ -49,6 +59,14 @@
 
     def test_parses_passwords_with_hash_character(self):
         self.assertEqual(self.nrc.hosts['bar'], ('log1', 'acct1', 'pass#'))
+        self.assertEqual(self.nrc.hosts['host.domain.com'], ('username', None, 'somet#hing'))
+
+    def test_comments(self):
+        '''Verifies that comment lines do not cause the following entries to be
+        skipped'''
+        self.assertEqual(self.nrc.hosts['host2.domain.com'], ('username2', None, 'something2'))
+        self.assertEqual(self.nrc.hosts['host3.domain.com'], ('username3', None, 'something3'))
+        self.assertEqual(self.nrc.hosts['host4.domain.com'], ('username4', None, 'something4'))
 
 def test_main():
     test_support.run_unittest(NetrcTestCase)