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I fail to see the problem. You have to change the recursion
limit; if you do, you risk a crash, as the documentation says:

http://docs.python.org/lib/module-sys.html
"This should be done with care, because a too-high limit can
lead to a crash."

With an unmodified recursionlimit in 2.4.3 on Windows, I get
the expected RuntimeError. If it causes a crash on some
system, it just means that the default recursion limit is
too high for that platform (however, we don't seem to have a
confirmation that the default recursion limit is too large
for this application on any platform for Python 2.4 or 2.5).

It is quite common that the system provides the main thread
with a larger stack space than any additional thread, so it
is not surprising that the stack overflow is detected on
some system when the code is run in the main thread, yet
crashes in an additional thread. The default recursion limit
should be the conservative minimum of what the system
minimally guarantees for any thread.

It seems that the original problem has been fixed (although
nobody apparently has tested Python 2.4 or 2.5 on Solaris8);
I suggest to close this as fixed again.