diff -rN -u old-cabal-install-0.8/Distribution/Client/IndexUtils.hs new-cabal-install-0.8/Distribution/Client/IndexUtils.hs
--- old-cabal-install-0.8/Distribution/Client/IndexUtils.hs	2010-06-14 22:16:58.249000098 +0300
+++ new-cabal-install-0.8/Distribution/Client/IndexUtils.hs	2010-06-14 22:16:58.292000097 +0300
@@ -168,10 +168,15 @@
 
     extractPrefs :: Tar.Entry -> Maybe [Dependency]
     extractPrefs entry = case Tar.entryContent entry of
+    {-
+     -- get rid of hackage's preferred-versions
+     -- I'd like to have bleeding-edge packages in system and I don't fear of
+     -- broken packages with improper depends
       Tar.NormalFile content _
          | takeFileName (Tar.entryPath entry) == "preferred-versions"
         -> Just . parsePreferredVersions
          . BS.Char8.unpack $ content
+    -}
       _ -> Nothing
 
     handleNotFound action = catch action $ \e -> if isDoesNotExistError e