diff -urN cabal/Distribution/PreProcess/Unlit.hs cabal-new/Distribution/PreProcess/Unlit.hs
--- cabal/Distribution/PreProcess/Unlit.hs	2005-10-13 09:11:28.000000000 +0200
+++ cabal-new/Distribution/PreProcess/Unlit.hs	2006-10-09 20:54:36.000000000 +0200
@@ -18,36 +18,27 @@
 
 import Data.Char
 
--- exports:
-
-unlit :: String -> String -> String
-unlit file lhs = (unlines . map unclassify . adjacent file (0::Int) Blank
-                 . classify 0) (tolines lhs)
+data Classified = Program String | Blank | Comment
+                | Include Int String | Pre String
 
-plain :: String -> String -> String	-- no unliteration
+plain :: String -> String -> String    -- no unliteration
 plain _ hs = hs
-----
-
-data Classified = Program String | Blank | Comment
-		| Include Int String | Pre String
 
-classify :: Int -> [String] -> [Classified]
-classify _ []                = []
-classify _ (('\\':x):xs) | x == "begin{code}" = Blank : allProg xs
-   where allProg [] = []	-- Should give an error message, but I have no
-				-- good position information.
-         allProg (('\\':x'):xs') |  x' == "end{code}" = Blank : classify 0 xs'
-	 allProg (x':xs') = Program x':allProg xs'
-classify 0 (('>':x):xs)  = let (sp,code) = span isSpace x in
-                           Program code : classify (length sp + 1) xs
-classify n (('>':x):xs)  = Program (drop (n-1) x) : classify n xs
-classify _ (('#':x):xs)  =
-     (case words x of
-        (line:file:_) | all isDigit line -> Include (read line) file
-        _                                -> Pre x
-     ) : classify 0 xs
-classify _ (x:xs) | all isSpace x = Blank:classify 0 xs
-classify _ (_:xs)                 = Comment:classify 0 xs
+classify :: [String] -> [Classified]
+classify []                = []
+classify (('\\':x):xs) | x == "begin{code}" = Blank : allProg xs
+   where allProg [] = []  -- Should give an error message,
+                          -- but I have no good position information.
+         allProg (('\\':x):xs) |  x == "end{code}" = Blank : classify xs
+	 allProg (x:xs) = Program x:allProg xs
+classify (('>':x):xs)      = Program (' ':x) : classify xs
+classify (('#':x):xs)      = (case words x of
+                                (line:file:_) | all isDigit line
+                                   -> Include (read line) file
+                                _  -> Pre x
+                             ) : classify xs
+classify (x:xs) | all isSpace x = Blank:classify xs
+classify (x:xs)                 = Comment:classify xs
 
 unclassify :: Classified -> String
 unclassify (Program s) = s
@@ -56,51 +47,39 @@
 unclassify Blank       = ""
 unclassify Comment     = ""
 
-adjacent :: String -> Int -> Classified -> [Classified] -> [Classified]
-adjacent file 0 _             (x              :xs) = x: adjacent file 1 x xs
-					-- force evaluation of line number
-adjacent file n   (Program _) (Comment      :_) =
-				error (message file n "program" "comment")
-adjacent _    _ y@(Program _) (x@(Include i f):xs) = x: adjacent f    i     y xs
+-- | 'unlit' takes a filename (for error reports), and transforms the
+--   given string, to eliminate the literate comments from the program text.
+unlit :: FilePath -> String -> String
+unlit file lhs = (unlines
+                 . map unclassify
+                 . adjacent file (0::Int) Blank
+                 . classify) (inlines lhs)
+
+adjacent :: FilePath -> Int -> Classified -> [Classified] -> [Classified]
+adjacent file 0 _             (x              :xs) = x : adjacent file 1 x xs -- force evaluation of line number
+adjacent file n y@(Program _) (x@Comment      :xs) = error (message file n "program" "comment")
+adjacent file n y@(Program _) (x@(Include i f):xs) = x: adjacent f    i     y xs
 adjacent file n y@(Program _) (x@(Pre _)      :xs) = x: adjacent file (n+1) y xs
-adjacent file n    Comment    ((Program _)  :_) =
-				error (message file n "comment" "program")
-adjacent _    _ y@Comment     (x@(Include i f):xs) = x: adjacent f    i     y xs
+adjacent file n y@Comment     (x@(Program _)  :xs) = error (message file n "comment" "program")
+adjacent file n y@Comment     (x@(Include i f):xs) = x: adjacent f    i     y xs
 adjacent file n y@Comment     (x@(Pre _)      :xs) = x: adjacent file (n+1) y xs
-adjacent _    _ y@Blank       (x@(Include i f):xs) = x: adjacent f    i     y xs
+adjacent file n y@Blank       (x@(Include i f):xs) = x: adjacent f    i     y xs
 adjacent file n y@Blank       (x@(Pre _)      :xs) = x: adjacent file (n+1) y xs
-adjacent file n _             (x              :xs) = x: adjacent file (n+1) x xs
-adjacent _    _ _             []                    = []
+adjacent file n _             (x@next         :xs) = x: adjacent file (n+1) x xs
+adjacent file n _             []                   = []
 
-message :: (Show a) => String -> a -> String -> String -> String
 message "\"\"" n p c = "Line "++show n++": "++p++ " line before "++c++" line.\n"
 message []     n p c = "Line "++show n++": "++p++ " line before "++c++" line.\n"
-message file   n p c = "In file " ++ file ++ " at line "
-                              ++show n++": "++p++ " line before "++c++" line.\n"
+message file   n p c = "In file " ++ file ++ " at line "++show n++": "++p++ " line before "++c++" line.\n"
 
 
--- Re-implementation of 'lines', for better efficiency (but decreased
--- laziness).  Also, importantly, accepts non-standard DOS and Mac line
--- ending characters.
-tolines :: String -> [String]
-tolines s' = lines' s' id
+-- Re-implementation of 'lines', for better efficiency (but decreased laziness).
+-- Also, importantly, accepts non-standard DOS and Mac line ending characters.
+inlines s = lines' s id
   where
   lines' []             acc = [acc []]
-  lines' ('\^M':'\n':s) acc = acc [] : lines' s id      -- DOS
-  lines' ('\^M':s)      acc = acc [] : lines' s id      -- MacOS
-  lines' ('\n':s)       acc = acc [] : lines' s id      -- Unix
+  lines' ('\^M':'\n':s) acc = acc [] : lines' s id	-- DOS
+  lines' ('\^M':s)      acc = acc [] : lines' s id	-- MacOS
+  lines' ('\n':s)       acc = acc [] : lines' s id	-- Unix
   lines' (c:s)          acc = lines' s (acc . (c:))
 
-
-
-{-
--- A very naive version of unliteration....
-module Unlit(unlit) where
--- This version does not handle \begin{code} & \end{code}, and it is
--- careless with indentation.
-unlit = map unlitline
-
-unlitline ('>' : s) = s
-unlitline _ = ""
--}
-