android ClassNotFoundException: Didn't find class

You do have a package mismatch error, it needs to be:

package="com.haber29.android.reader"

Since reader is the next subpackage and this is the subpackage that contains the Activities.

And don't forget, you can specify the fully qualified name for each Activity, to prevent confusion:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.haber29.android"
    android:versionCode="3"
    android:versionName="1.0" >
    <uses-sdk android:minSdkVersion="7" />
    <uses-permission android:name="android.permission.INTERNET"/>
    <application
        android:icon="@drawable/ic_launcher"
        android:label="@string/app_name">
        <activity
            android:name="com.haber29.android.reader.ITCutiesReaderAppActivity"
            android:label="@string/app_name" >
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />
                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>
        <activity
            android:name="com.haber29.android.reader.ItemDescriptionActivity"
            android:label="@string/app_name" >
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />
            </intent-filter>
            </activity>
    </application>
</manifest>