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This is now fixed in the Expat CVS with lib/xmlparse.c
revisions 1.154 and 1.155.  I've merged these into the Expat
bundled with Python in revision 47191 (on the trunk), and
moved the crasher test into the tests for xml.parsers.expat.

I don't know when the next Expat release will go out yet,
but this will keep us from being dependent on that schedule.