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Yes, I think this is the right way to go about it. I'd
personally make a couple of changes, but those are up to
your discretion:

* Factor out the try: except:'s to a nested function.
* Use sys.exc_info() instead of the exception for backwards
compatibility.
* Use 'os.path.isdir(fullname) and not
os.path.islink(fullname)' expression instead of the lstat
call. I think it more clearly communicates what we want,
even though it's more stat calls.

Latest version attached (rmtree-refactored.py).