Index: Lib/test/test_import.py
===================================================================
--- Lib/test/test_import.py	(revision 77814)
+++ Lib/test/test_import.py	(working copy)
@@ -7,7 +7,8 @@
 import py_compile
 import warnings
 import marshal
-from test.test_support import (unlink, TESTFN, unload, run_unittest,
+import imp
+from test.test_support import (unlink, rmtree, TESTFN, unload, run_unittest,
     check_warnings, TestFailed, EnvironmentVarGuard)
 
 
@@ -121,7 +122,7 @@
 
     def testImpModule(self):
         # Verify that the imp module can correctly load and find .py files
-        import imp, os
+
         # XXX (ncoghlan): It would be nice to use test_support.CleanImport
         # here, but that breaks because the os module registers some
         # handlers in copy_reg on import. Since CleanImport doesn't
@@ -138,6 +139,14 @@
             self.assertIs(orig_path, new_os.path)
             self.assertIsNot(orig_getenv, new_os.getenv)
 
+    def test_bug7732(self):
+        source = TESTFN + '.py'
+        os.mkdir(source)
+        try:
+            self.assertRaises(IOError, imp.find_module, TESTFN, ["."])
+        finally:
+            rmtree(source)
+
     def test_module_with_large_stack(self, module='longlist'):
         # create module w/list of 65000 elements to test bug #561858
         filename = module + os.extsep + 'py'
Index: Python/import.c
===================================================================
--- Python/import.c	(revision 77814)
+++ Python/import.c	(working copy)
@@ -2841,7 +2841,6 @@
 	if (fp != NULL) {
 		fob = PyFile_FromFile(fp, pathname, fdp->mode, fclose);
 		if (fob == NULL) {
-			fclose(fp);
 			return NULL;
 		}
 	}
Index: Objects/fileobject.c
===================================================================
--- Objects/fileobject.c	(revision 77814)
+++ Objects/fileobject.c	(working copy)
@@ -459,8 +459,10 @@
 							     NULL, NULL);
 	if (f != NULL) {
 		PyObject *o_name = PyString_FromString(name);
-		if (o_name == NULL)
+		if (o_name == NULL) {
+			Py_DECREF(f);
 			return NULL;
+		}
 		if (fill_file_fields(f, fp, o_name, mode, close) == NULL) {
 			Py_DECREF(f);
 			f = NULL;