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Same error happening here along with a Butter bar stating "Manifest file is invalid." in Mac OS X 10.8.2 and Chrome 25.0.1364.160.

We've been looking at this, apparently this happens when an extension has just been released and is "propagating between servers".

If the extension install is not working for you, it should start working later today once Google's webstore servers have updated

I had this issue and literally 10 seconds later I tried again and it worked fine

I've tried several times now and I'm still getting "Manifest file is invalid".