bzr update / bzr co fails

[mitra]

mitra@lanka:/tmp$ bzr co bzr+ssh://<email address hidden>//home/myhome/xyz/
Server does not understand Bazaar network protocol 3, reconnecting. (Upgrade the server to avoid this.)
bzr: ERROR: exceptions.AssertionError: _remember_remote_is_before((2, 1)) called, but _remember_remote_is_before((1, 6)) was called previously.

*** Bazaar has encountered an internal error. This probably indicates a
    bug in Bazaar. You can help us fix it by filing a bug report at
        https://bugs.launchpad.net/bzr/+filebug
    attaching the crash file
        /home/mitra/.cache/crash/bzr-20100812124114-13081.crash
    and including a description of the problem.

    The crash file is plain text and you can inspect or edit it to remove
    private information.