diff --git a/PCbuild/bz2.vcproj b/PCbuild/bz2.vcproj
index f3e170b984e..415f03abd6e 100644
--- a/PCbuild/bz2.vcproj
+++ b/PCbuild/bz2.vcproj
@@ -3,6 +3,7 @@
 	ProjectType="Visual C++"
 	Version="7.10"
 	Name="bz2"
+	RootNamespace="bz2"
 	SccProjectName="bz2"
 	SccLocalPath="..">
 	<Platforms>
@@ -62,7 +63,7 @@
 			<Tool
 				Name="VCPreLinkEventTool"
 				CommandLine="cd ..\..\bzip2-1.0.2
-nmake /nologo /f makefile.msc lib
+nmake /nologo /f makefile.msc
 "/>
 			<Tool
 				Name="VCResourceCompilerTool"
diff --git a/PCbuild/readme.txt b/PCbuild/readme.txt
index 043bfa41156..bacd69ae779 100644
--- a/PCbuild/readme.txt
+++ b/PCbuild/readme.txt
@@ -158,8 +158,6 @@ bz2
     If FC finds differences, see the warning abou WinZip above (when I
     first tried it, sample3.ref failed due to CRLF conversion).
 
-    # XXX: it fails with vc 7.1, so the tests are skipped for now.
-
     All of this managed to build bzip2-1.0.2\libbz2.lib, which the Python
     project links in.