RE: Local variable processing during autoload extraction

I am taking a look at the package build to see if I can figure out what's causing the coding cookie problem. In my build log I see this warning: Warning: Error in File local-variables: Symbol's function definition is void: outline-minor-mode followed by a backtrace. The problem is that, when trying to extract autoloads, XEmacs comes to xemacs-packages/tm/tm-tar.el, which has this at the end: ;;; Local Variables: ;;; mode: emacs-lisp ;;; mode: outline-minor ;;; outline-regexp: ";;; ＠+\\|(......" ;;; End: Shouldn't we have local variable processing turned off during the autoload extraction process?