diff -r 932de36903e7 Lib/netrc.py
--- a/Lib/netrc.py	Tue May 17 13:22:30 2011 +0200
+++ b/Lib/netrc.py	Wed May 18 15:20:02 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	Wed May 18 15:20:02 2011 +0300
@@ -1,54 +1,81 @@
 
-import netrc, os, unittest, sys
+import netrc, os, unittest, sys, textwrap
 from test import test_support
 
-TEST_NETRC = """
-
- #this is a comment
-#this is a comment
-# this is a comment
-
-machine foo login log1 password pass1 account acct1
-machine bar login log1 password pass# account acct1
-
-macdef macro1
-line1
-line2
-
-macdef macro2
-line3
-line4
-
-default login log2 password pass2
-
-"""
-
 temp_filename = test_support.TESTFN
 
 class NetrcTestCase(unittest.TestCase):
 
-    def setUp (self):
+    def setUp(self):
+        pass
+
+    def tearDown(self):
+        os.unlink(temp_filename)
+
+    def make_nrc(self, test_data):
+        test_data = textwrap.dedent(test_data)
         mode = 'w'
         if sys.platform not in ['cygwin']:
             mode += 't'
         fp = open(temp_filename, mode)
-        fp.write(TEST_NETRC)
+        fp.write(test_data)
         fp.close()
-        self.nrc = netrc.netrc(temp_filename)
+        return netrc.netrc(temp_filename)
 
-    def tearDown (self):
-        os.unlink(temp_filename)
-
-    def test_case_1(self):
-        self.assertEqual(self.nrc.hosts['foo'], ('log1', 'acct1', 'pass1'))
-        self.assertEqual(self.nrc.hosts['default'], ('log2', None, 'pass2'))
+    def test_default(self):
+        nrc = self.make_nrc("""
+                machine host1.domain.com login log1 password pass1 account acct1
+                default login log2 password pass2
+                """)
+        self.assertEqual(nrc.hosts['host1.domain.com'], ('log1', 'acct1', 'pass1'))
+        self.assertEqual(nrc.hosts['default'], ('log2', None, 'pass2'))
 
     def test_macros(self):
-        self.assertEqual(self.nrc.macros, {'macro1':['line1\n', 'line2\n'],
-                                           'macro2':['line3\n', 'line4\n']})
+        nrc = self.make_nrc("""
+                macdef macro1
+                line1
+                line2
+                
+                macdef macro2
+                line3
+                line4
+                """)
+        self.assertEqual(nrc.macros, {'macro1':['line1\n', 'line2\n'],
+                                      'macro2':['line3\n', 'line4\n']})
 
-    def test_parses_passwords_with_hash_character(self):
-        self.assertEqual(self.nrc.hosts['bar'], ('log1', 'acct1', 'pass#'))
+    def test_passwords_with_hash_character(self):
+        nrc = self.make_nrc("""
+                 #this is a comment
+                #this is a comment
+                # this is a comment
+                
+                machine host1.domain.com login log1 password #pass1 account acct1
+                machine host2.domain.com login log2 password pass2# account acct2
+                machine host3.domain.com login log3 password pa#ss3 account acct3
+                """)
+        self.assertEqual(nrc.hosts['host1.domain.com'], ('log1', 'acct1', '#pass1'))
+        self.assertEqual(nrc.hosts['host2.domain.com'], ('log2', 'acct2', 'pass2#'))
+        self.assertEqual(nrc.hosts['host3.domain.com'], ('log3', 'acct3', 'pa#ss3'))
+
+    def test_comments(self):
+        '''Verifies that comment lines do not cause the following entries to be
+        skipped'''
+        nrc = self.make_nrc("""
+                machine host1.domain.com login log1 password pass1
+                
+                # comment1
+                machine host2.domain.com login log2 password pass2 #comment at end
+                
+                #comment2
+                machine host3.domain.com login log3 password pass3 # comment at end with space
+                
+                #
+                machine host4.domain.com login log4 password pass4
+                """)
+        self.assertEqual(nrc.hosts['host1.domain.com'], ('log1', None, 'pass1'))
+        self.assertEqual(nrc.hosts['host2.domain.com'], ('log2', None, 'pass2'))
+        self.assertEqual(nrc.hosts['host3.domain.com'], ('log3', None, 'pass3'))
+        self.assertEqual(nrc.hosts['host4.domain.com'], ('log4', None, 'pass4'))
 
 def test_main():
     test_support.run_unittest(NetrcTestCase)