Sleep is, in theory, included, but many of us find our numbers match up to our burn/losses better if we do include it. Just find sleeping under activities (or search for it), and put in the time.
"If you drop an egg, you don't say, 'Oh, shoot' and drop the other 11, do you?"
-Source unknown, but obviously brilliant
Reached goal 4/16/2010...but kind of afraid to look these days