npm doesn't work with node v0.8.5?

I'm deploying a Node app to Heroku and get the following error. If npm doesn't work with recent versions of Node, what are we supposed to use for a package manager? I really liked node_modules and package.json. It seemed very logical.

-----> Heroku receiving push
-----> Node.js app detected
-----> Resolving engine versions
       Using Node.js version: 0.8.5
       Using npm version: 1.0.106
-----> Fetching Node.js binaries
-----> Vendoring node into slug
-----> Installing dependencies with npm
       Error: npm doesn't work with node v0.8.5
       Required: node@0.4 || 0.5 || 0.6

If you're specifying Node.js 0.8.x via "engines" in your package.json, you may also need to set a version for "npm":

{
  ...
  "engines": {
    "node": "0.8.x",
    "npm":  "1.1.x"
  }
}

From the Heroku Dev Center for Node.js:

If you do not specify a version, you will get the following defaults:

  • Node.js: 0.4.7
  • npm: 1.0.106

That page also includes links to supported version manifests for both.

You've simply got an obsolete version of npm: the current version is 1.1.45 and works just fine with 0.8.x versions of node.