diff --git a/Doxyfile b/Doxyfile
index eeb587bd..2de14cfd 100644
--- a/Doxyfile
+++ b/Doxyfile
@@ -22,7 +22,7 @@ PROJECT_NAME           = SimGear
 # This could be handy for archiving the generated documentation or 
 # if some version control system is used.
 
-PROJECT_NUMBER         = 0.3.7
+PROJECT_NUMBER         = 0.3.8
 
 # The OUTPUT_DIRECTORY tag is used to specify the (relative or absolute) 
 # base path where the generated documentation will be put. 
diff --git a/NEWS b/NEWS
index 7f7646b2..985a203f 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,18 @@
+New in 0.3.8-pre1
+* December 15, 2004
+
+* Configure script does a sanity check for the existance of openal.
+* Better pthreads detection for FreeBSD.
+* Abstract out the location of gl.h, glu.h, and glut.h so we can more
+  easily support MacOS which puts these in an oddball location.
+* Added two new debug output types for instrumentation and systems.
+* Add a name parameter to the waypoint class for supporting a route
+  manager in the flightgear gps module.
+* Make display list usage optional.
+* Event manager: specifying a zero delay will force event execution in
+  the next frame rather than entering an infinite loop.
+
+
 New in 0.3.7
 * October 12, 2004
 
diff --git a/configure.ac b/configure.ac
index 70f33fdf..dc99f219 100644
--- a/configure.ac
+++ b/configure.ac
@@ -10,7 +10,7 @@ dnl Require at least automake 2.52
 AC_PREREQ(2.52)
 
 dnl Initialize the automake stuff
-AM_INIT_AUTOMAKE(SimGear, 0.3.7)
+AM_INIT_AUTOMAKE(SimGear, 0.3.8-pre1)
 
 dnl Specify KAI C++ compiler and flags.
 dnl Borrowed with slight modification from blitz distribution.