Android Build Error

I installed some new packages (like Google Play Services) and updated some existing packages in the Android Manager and now when I try to rebuild the app that I am working on I get the following error:

[TRACE] Writing out AndroidManifest.xml
[ERROR] Exception occured while building Android project:
[ERROR] Traceback (most recent call last):
[ERROR]   File "/Users/stoyan/Library/Application Support/Titanium/mobilesdk/osx/3.1.0.GA/android/builder.py", line 2553, in <module>
[ERROR]     builder.build_and_run(True, avd_id, device_args=device_args, debugger_host=debugger_host, profiler_host=profiler_host)
[ERROR]   File "/Users/stoyan/Library/Application Support/Titanium/mobilesdk/osx/3.1.0.GA/android/builder.py", line 2264, in build_and_run
[ERROR]     self.manifest_changed = self.generate_android_manifest(compiler)
[ERROR]   File "/Users/stoyan/Library/Application Support/Titanium/mobilesdk/osx/3.1.0.GA/android/builder.py", line 1404, in generate_android_manifest
[ERROR]     '-I', self.android_jar], warning_regex=r'skipping')
[ERROR]   File "/Users/stoyan/Library/Application Support/Titanium/mobilesdk/osx/3.1.0.GA/android/run.py", line 38, in run
[ERROR]     print "[DEBUG] %s" % subprocess.list2cmdline(args_to_log)
[ERROR]   File "/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/subprocess.py", line 580, in list2cmdline
[ERROR]     needquote = (" " in arg) or ("\t" in arg) or not arg
[ERROR] TypeError: argument of type 'NoneType' is not iterable
[ERROR] :  Build process exited with code 1
[ERROR] :  Project failed to build after 6s 377ms

I thought this might have to do with our custom AndroidManifest.xml, but when I remove it, clean the project, and rebuild the same thing happens.

This is SDK 3.1.0.GA but the same thing happens if I roll back to 3.0.2.GA or 2.1.4.GA.

I'm building the app using Run > my android device configuration.

Everything worked just fine before the installing the new packages / updating the old ones.