diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index 20a74b7990..6d5c56aff9 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -1,3 +1,6 @@
+#### 0.33.4 - 11.03.2015
+* BUGFIX: `paket install` respects manual paket nodes - https://github.com/fsprojects/Paket/issues/679
+
 #### 0.33.3 - 11.03.2015
 * `paket pack` pretty-prints it's nuspec - https://github.com/fsprojects/Paket/issues/691
 
diff --git a/src/Paket.Core/ProjectFile.fs b/src/Paket.Core/ProjectFile.fs
index 9fe1d7169a..f5ec6d6f1d 100644
--- a/src/Paket.Core/ProjectFile.fs
+++ b/src/Paket.Core/ProjectFile.fs
@@ -37,7 +37,8 @@ type ProjectFile =
         [for node in this.Document |> getDescendants name do
             let isPaketNode = ref false
             for child in node.ChildNodes do
-                if child.Name = "Paket" then isPaketNode := true
+                if child.Name = "Paket" && child.InnerText.ToLower() = "true" then 
+                    isPaketNode := true
 
             if !isPaketNode = paketOnes then yield node]
 
@@ -187,10 +188,12 @@ type ProjectFile =
         let libs =
             model.GetLibReferencesLazy.Force()
             |> Set.map (fun lib -> lib.ReferenceName)
-        
+       
         this.GetCustomReferenceAndFrameworkNodes()
-        |> List.filter (fun node -> Set.contains (node.Attributes.["Include"].InnerText.Split(',').[0]) libs)
-    
+        |> List.filter (fun node -> 
+            let libName = node.Attributes.["Include"].InnerText.Split(',').[0]
+            Set.contains libName libs)
+
     member this.DeleteCustomModelNodes(model:InstallModel) =
         let nodesToDelete = 
             this.GetCustomModelNodes(model)
diff --git a/tests/Paket.Tests/InstallModel/Xml/ManualNodes.fs b/tests/Paket.Tests/InstallModel/Xml/ManualNodes.fs
index abf92cd0fa..fa6f88357a 100644
--- a/tests/Paket.Tests/InstallModel/Xml/ManualNodes.fs
+++ b/tests/Paket.Tests/InstallModel/Xml/ManualNodes.fs
@@ -19,6 +19,19 @@ let ``should find custom nodes in doc``() =
     ProjectFile.Load("./ProjectFile/TestData/CustomFantomasNode.fsprojtest").Value.GetCustomModelNodes(model).IsEmpty
     |> shouldEqual false
 
+[<Test>]
+let ``should find custom Paket nodes in doc``() = 
+    let model =
+        InstallModel.CreateFromLibs(PackageName "Fantomas", SemVer.Parse "1.5.0", [],
+            [ @"..\Fantomas\lib\FantomasLib.dll" 
+              @"..\Fantomas\lib\FSharp.Core.dll" 
+              @"..\Fantomas\lib\Fantomas.exe" ],
+              [],
+              Nuspec.Explicit ["FantomasLib.dll"])
+    
+    ProjectFile.Load("./ProjectFile/TestData/CustomPaketFantomasNode.fsprojtest").Value.GetCustomModelNodes(model).IsEmpty
+    |> shouldEqual false
+
 
 [<Test>]
 let ``should not find custom nodes if there are none``() = 
diff --git a/tests/Paket.Tests/Paket.Tests.fsproj b/tests/Paket.Tests/Paket.Tests.fsproj
index c3ebc58ef0..b0ac5c676b 100644
--- a/tests/Paket.Tests/Paket.Tests.fsproj
+++ b/tests/Paket.Tests/Paket.Tests.fsproj
@@ -1,4 +1,4 @@
-<?xml version="1.0" encoding="utf-8"?>
+<?xml version="1.0" encoding="utf-8"?>
 <Project ToolsVersion="4.0" DefaultTargets="Build" xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
   <Import Project="$(MSBuildExtensionsPath)\$(MSBuildToolsVersion)\Microsoft.Common.props" Condition="Exists('$(MSBuildExtensionsPath)\$(MSBuildToolsVersion)\Microsoft.Common.props')" />
   <PropertyGroup>
@@ -208,6 +208,9 @@
     </None>
     <None Include="ProjectFile\TestData\CustomFantomasNode.fsprojtest">
       <CopyToOutputDirectory>Always</CopyToOutputDirectory>
+    </None>                                     
+    <None Include="ProjectFile\TestData\CustomPaketFantomasNode.fsprojtest">
+      <CopyToOutputDirectory>Always</CopyToOutputDirectory>
     </None>
     <None Include="ProjectFile\TestData\NoCustomFantomasNode.fsprojtest">
       <CopyToOutputDirectory>Always</CopyToOutputDirectory>
diff --git a/tests/Paket.Tests/ProjectFile/TestData/CustomPaketFantomasNode.fsprojtest b/tests/Paket.Tests/ProjectFile/TestData/CustomPaketFantomasNode.fsprojtest
new file mode 100644
index 0000000000..ea2c370b42
--- /dev/null
+++ b/tests/Paket.Tests/ProjectFile/TestData/CustomPaketFantomasNode.fsprojtest
@@ -0,0 +1,15 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Project ToolsVersion="4.0" DefaultTargets="Build" xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
+  <Import Project="$(MSBuildExtensionsPath)\$(MSBuildToolsVersion)\Microsoft.Common.props" Condition="Exists('$(MSBuildExtensionsPath)\$(MSBuildToolsVersion)\Microsoft.Common.props')" />
+  <ItemGroup>
+    <Reference Include="Fanta">
+      <HintPath>..\..\packages\Fanta\lib\Fanta.dll</HintPath>
+      <Private>True</Private>
+    </Reference>
+    <Reference Include="FantomasLib">
+      <HintPath>..\..\packages\Fantomas\lib\FantomasLib.dll</HintPath>
+      <Private>True</Private>
+      <Paket>False</Paket>
+    </Reference>
+  </ItemGroup>
+</Project>
\ No newline at end of file