I've documented the issue over in drush makes's queue: http://drupal.org/node/703678#comment-4847944

However it seems to me the problem is really with the meta data about releases of custom_pagers - arguably all drush make could do is handle the problem a bit more gracefully.

I don't quite understand how drush dl (and seemingly project module on d.o) don't seem to have a problem with the current settings - perhaps my understanding of the situation's not quite right?