Patch to paper over this problem follows.  I suspect that 'copy-syntax-table' is actually at fault, but with this at least the test in http://mid.gmane.org/cp7323$qm7$1%40sea.gmane.org works.

Robert


Index: subr.el
===================================================================
RCS file: /pack/xemacscvs/XEmacs/xemacs/lisp/subr.el,v
retrieving revision 1.39
diff -u - r1.39 subr.el
--- subr.el    2006/08/11 01:30:23    1.39
+++ subr.el    2007/03/13 09:03:05
@@ -607,7 +607,7 @@
        (,old-buffer (current-buffer)))
        (unwind-protect
        (progn
-         (set-syntax-table (copy-syntax-table ,table))
+         (set-syntax-table ,table)
          ,@body)
      (save-current-buffer
        (set-buffer ,old-buffer)