diff --git a/PKG-INFO b/PKG-INFO
index 69aea8e..24cc8c1 100644
--- a/PKG-INFO
+++ b/PKG-INFO
@@ -1,6 +1,6 @@
 Metadata-Version: 1.0
 Name: PasteDeploy
-Version: 1.3
+Version: 1.3.1
 Summary: Load, configure, and compose WSGI applications and servers
 Home-page: http://pythonpaste.org/deploy/
 Author: Ian Bicking
diff --git a/PasteDeploy.egg-info/PKG-INFO b/PasteDeploy.egg-info/PKG-INFO
index 69aea8e..24cc8c1 100644
--- a/PasteDeploy.egg-info/PKG-INFO
+++ b/PasteDeploy.egg-info/PKG-INFO
@@ -1,6 +1,6 @@
 Metadata-Version: 1.0
 Name: PasteDeploy
-Version: 1.3
+Version: 1.3.1
 Summary: Load, configure, and compose WSGI applications and servers
 Home-page: http://pythonpaste.org/deploy/
 Author: Ian Bicking
diff --git a/docs/news.txt b/docs/news.txt
index 4427640..df1ae24 100644
--- a/docs/news.txt
+++ b/docs/news.txt
@@ -1,8 +1,15 @@
 Paste Deployment News
 =====================
 
-svn trunk
----------
+1.3.1
+-----
+
+* Fix ``appconfig`` config loading when using a config file with
+  ``filter-with`` in it (previously you'd get TypeError: iteration
+  over non-sequence)
+
+1.3
+---
 
 * Added ``scheme`` option to ``PrefixMiddleware``, so you can force a
   scheme (E.g., when proxying an HTTPS connection over HTTP).
diff --git a/paste/deploy/loadwsgi.py b/paste/deploy/loadwsgi.py
index 3894bec..3bb820f 100644
--- a/paste/deploy/loadwsgi.py
+++ b/paste/deploy/loadwsgi.py
@@ -317,7 +317,7 @@
 class ConfigLoader(_Loader):
 
     def __init__(self, filename):
-        self.filename = filename
+        self.filename = filename = filename.strip()
         self.parser = NicerConfigParser(self.filename)
         # Don't lower-case keys:
         self.parser.optionxform = str
@@ -325,7 +325,7 @@
         # we have to add an extra check:
         if not os.path.exists(filename):
             raise OSError(
-                "File %s not found" % filename)
+                "File %r not found" % filename)
         self.parser.read(filename)
         self.parser._defaults.setdefault(
             'here', os.path.dirname(os.path.abspath(filename)))
@@ -400,7 +400,7 @@
                 obj=None,
                 object_type=FILTER_WITH,
                 protocol=None,
-                global_conf=None, local_conf=None,
+                global_conf=global_conf, local_conf=local_conf,
                 loader=self)
             filter_with_context.filter_context = self.filter_context(
                 name=filter_with, global_conf=global_conf)
diff --git a/setup.cfg b/setup.cfg
index 2637508..57c451d 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -1,19 +1,22 @@
 [pudge]
 highlighter = pygments
+title = Paste Deploy
+dest = docs/html
+docs = docs/index.txt docs/news.txt
 settings = no_about=true
 	link1=/deploy/ paste.deploy
 	link2=/script/ paster script
 	link3=/download/ Download
 	extra_credits=Hosting courtesy of <a href="http://tummy.com">Tummy.com</a>
-dest = docs/html
-docs = docs/index.txt docs/news.txt
-title = Paste Deploy
 modules = paste.deploy
 theme = pythonpaste.org
 mailing_list_url = http://pythonpaste.org/community/mailing-list.html
 organization = Python Paste
 organization_url = http://pythonpaste.org/
 trac_url = http://pythonpaste.org/trac/
+
+[global]
+command_packages = buildutils.pudge_command, buildutils.publish_command
 
 [egg_info]
 tag_build = 
@@ -25,3 +28,6 @@
 make-dirs = 1
 doc-dir = docs/html
 
+[aliases]
+distribute = register sdist bdist_egg upload pudge publish
+
diff --git a/setup.py b/setup.py
index dc6dc67..c85bfe9 100644
--- a/setup.py
+++ b/setup.py
@@ -1,6 +1,6 @@
 from setuptools import setup, find_packages
 
-version = '1.3'
+version = '1.3.1'
 
 setup(
     name="PasteDeploy",
diff --git a/tests/sample_configs/test_filter_with.ini b/tests/sample_configs/test_filter_with.ini
index ec6592b..118804f 100644
--- a/tests/sample_configs/test_filter_with.ini
+++ b/tests/sample_configs/test_filter_with.ini
@@ -1,5 +1,6 @@
 [app:main]
 use = egg:FakeApp#basic_app
+example = test
 filter-with = filter1
 
 [filter:filter1]
diff --git a/tests/test_config.py b/tests/test_config.py
index cf19cf5..6fffe82 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -94,6 +94,10 @@
         'here': config_path,
         '__file__': config_filename,}
 
+def test_appconfig_filter_with():
+    conf = appconfig('config:test_filter_with.ini', relative_to=config_path)
+    assert conf['example'] == 'test'
+
 def test_global_conf():
     conf = appconfig(ini_file, relative_to=here, name='test_global_conf', global_conf={'def2': 'TEST DEF 2', 'inherit': 'bazbar'})
     pprint(conf)