'version' line in .info file breaks Update Status

I check out my modules from CVS and use update_status and cvs_deploy to check that my module versions are current.

It seems that taxonomy_manager.info contains a line that breaks this system:

; $Id$
name = Taxonomy Manager
description = Tool for administrating taxonomy terms.
version = VERSION
dependencies = taxonomy

With the latest version of the module (5.x-1.2) installed, the available updates log at /admin/logs/updates lists the version as "Taxonomy Manager 5.18" and shows "Security update required!" – clearly the update system is getting confused here (see attachment 1).

If I remove the "version = VERSION" line from taxonomy_manager.info and refresh the updates log, all works as expected: version shows "Taxonomy Manager 5.x-1.2" and status is "Up to date" (see attachment 2).

Trivial patch is also attached.