Index: Lib/test/test_itertools.py
===================================================================
--- Lib/test/test_itertools.py	(revision 68187)
+++ Lib/test/test_itertools.py	(working copy)
@@ -79,7 +79,7 @@
         self.assertRaises(TypeError, combinations, 'abc', 2, 1) # too many arguments
         self.assertRaises(TypeError, combinations, None)        # pool is not iterable
         self.assertRaises(ValueError, combinations, 'abc', -2)  # r is negative
-        self.assertRaises(ValueError, combinations, 'abc', 32)  # r is too big
+        self.assertEqual(list(combinations(range(4), 5)), [])
         self.assertEqual(list(combinations(range(4), 3)),
                                            [(0,1,2), (0,1,3), (0,2,3), (1,2,3)])
 
@@ -134,8 +134,8 @@
         self.assertRaises(TypeError, permutations, 'abc', 2, 1) # too many arguments
         self.assertRaises(TypeError, permutations, None)        # pool is not iterable
         self.assertRaises(ValueError, permutations, 'abc', -2)  # r is negative
-        self.assertRaises(ValueError, permutations, 'abc', 32)  # r is too big
         self.assertRaises(TypeError, permutations, 'abc', 's')  # r is not an int or None
+        self.assertEqual(list(permutations(range(3), 4)), [])
         self.assertEqual(list(permutations(range(3), 2)),
                                            [(0,1), (0,2), (1,0), (1,2), (2,0), (2,1)])
 
Index: Modules/itertoolsmodule.c
===================================================================
--- Modules/itertoolsmodule.c	(revision 68187)
+++ Modules/itertoolsmodule.c	(working copy)
@@ -1880,10 +1880,6 @@
 		PyErr_SetString(PyExc_ValueError, "r must be non-negative");
 		goto error;
 	}
-	if (r > n) {
-		PyErr_SetString(PyExc_ValueError, "r cannot be bigger than the iterable");
-		goto error;
-	}
 
 	indices = PyMem_Malloc(r * sizeof(Py_ssize_t));
 	if (indices == NULL) {
@@ -1903,7 +1899,7 @@
 	co->indices = indices;
 	co->result = NULL;
 	co->r = r;
-	co->stopped = 0;
+	co->stopped = r > n ? 1 : 0;
 
 	return (PyObject *)co;
 
@@ -2143,10 +2139,6 @@
 		PyErr_SetString(PyExc_ValueError, "r must be non-negative");
 		goto error;
 	}
-	if (r > n) {
-		PyErr_SetString(PyExc_ValueError, "r cannot be bigger than the iterable");
-		goto error;
-	}
 
 	indices = PyMem_Malloc(n * sizeof(Py_ssize_t));
 	cycles = PyMem_Malloc(r * sizeof(Py_ssize_t));
@@ -2170,7 +2162,7 @@
 	po->cycles = cycles;
 	po->result = NULL;
 	po->r = r;
-	po->stopped = 0;
+	po->stopped = r > n ? 1 : 0;
 
 	return (PyObject *)po;