'Cannot parse input stream' error when updating defects in Rally via pyral
===

I am using the Python Toolkit for Rally REST API to update defects on our Rally server. I have confirmed that I am able to make contact with the server and authenticate fine by getting a list of current defects. I am running into issues with updating them. I am using Python 2.7.3 with pyral 0.9.1 and requests 0.13.3.

Also, I am passing 'verify=False' to the Rally() call and have made appropriate chages to the 
restapi module to compensate for this.

Here is my test code:
    import sys
    from pyral import Rally, rallySettings

    server = "rallydev.server1.com"
    user = "user@mycompany.com"
    password = "trial"
    workspace = "trialWorkspace"
    project = "Testing Project"
    defectID = "DE192"

    rally = Rally(server, user, password, workspace=workspace,
                  project=project,     verify=False)
    defect_data = { "FormattedID" : defectID,
                    "State"       : "Completed"
                  }
    try:
        defect = rally.update('Defect', defect_data)
    except Exception, details:
        sys.stderr.write('ERROR: %s \n' % details)
        sys.exit(1)

    print "Defect %s updated" % defect.FormattedID

When I run the script:  
[temp]$ ./updefect.py  
ERROR: Unable to update the Defect  

If I change the code in the RallyRESTResponse function to print out the value of self.errors when found (line 164 of rallyresp.py), I get this output:

[temp]$ ./updefect.py   
[u"Cannot parse input stream due to I/O error as JSON document: Parse error: expected '{' but saw '\uffff' [ chars read = >>>\uffff<<< ]"]  
ERROR: Unable to update the Defect  

Can you provide any assistance?