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Thanks for the patch -- it looks very impressive !.

I'll give it a try later this week. 

Some first cosmetic tidbits:
* please don't place more than one C statement on one line
like in:
"""
+               unicode = unicode2; unicodepos =
unicode2pos;
+               unicode2 = NULL; unicode2pos = 0;
"""

* Comments should start with a capital letter and be
prepended
to the section they apply to

* There should be spaces between arguments in compares
(a == b) not (a==b)

* Where does the name "...Encode121" originate ?

* module internal APIs should use lower case names (you
converted some of these to  PyUnicode_...() -- this is
normally reserved for APIs which are either marked as
potential candidates for the public API or are very
prominent in the code)

One thing which I don't like about your API change is that
you removed the Py_UNICODE*data, int size style arguments --
this makes it impossible to use the new APIs on non-Python
data or data which is not available as Unicode object.

Please separate the errors.c patch from this patch -- it
seems totally unrelated to Unicode.

Thanks.