Illegal XML character in Hello World

I have the latest cappuccino code pulled from git and I built everything fresh with 'ant bootstrap'. Then I created an application with 'steam create capu'. When I load it in Firefox 3 or Safari, it doesn't work. In Firebug, it reports:

Illegal XML character                             Objective-J.js (line 1862)
<Foundation/CPObject.j>\n

In Safari, it just says "Parse error".

line 1862 in Objective-J.js is:

1856 function fragment_evaluate_code(aFragment)
1857{
1858 var compiled;
1859 OBJJ_CURRENT_BUNDLE = aFragment.bundle;
1860 try
1861 {
1862 compiled = new Function(aFragment.info);
1863 }
1864 catch(anException)
1865 {
1866 objj_exception_report(anException, aFragment.file);
1867 }
1868 try
1869 {
1870 compiled();
1871 }
1872 catch(anException)
1873 {
1874 objj_exception_report(anException, aFragment.file);
1875 }
1876 return NO;
1877}

I believe it is balking at this line in AppController.j:

import <Foundation/CPObject.j>

I've tried it with

@import <Foundation/CPObject.j>

as well to no avail...

I've used the CappuccinoStarter app before and it works fine...I also tried changing this config value in firefox:

http://github.com/280north/cappu...

But it has the same problem...