This bug is found in a stress-test case for Javac. It is not a MUST-FIX for merlin.

For the following build
=======================

jtools-sqe:/home/vr128054/vertest/4496625 69 % javac -J-version
java version "1.4.0-beta3"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.4.0-beta3-b81)
Java HotSpot(TM) Client VM (build 1.4.0-beta3-b81, mixed mode)

Please use the following class to generate the testcase
========================================================

jtools-sqe:/home/vr128054/vertest/4496625 70 % more gen.java
public class gen
{
        public static void main (String args[])
        {
                int lCtr;

                System.out.println ("public class test");
                System.out.println ("{");

                for (lCtr = 0; lCtr < 1024; lCtr ++)
                {
                        System.out.println ("{");
                }

                for (lCtr = 0; lCtr < 1024; lCtr ++)
                {
                        System.out.println ("}");
                }

                System.out.println ("}");
        }
}

Do the following...
===================

jtools-sqe:/home/vr128054/vertest/4496625 71 % javac gen.java
jtools-sqe:/home/vr128054/vertest/4496625 72 % java gen > test.java

Now, when attempting to compiler test.java, javac crashes.
==========================================================

jtools-sqe:/home/vr128054/vertest/4496625 73 % javac test.java
An exception has occurred in the compiler (1.4.0-beta3). Please file a bug at the Java Developer Connection (http://java.sun.com/cgi-bin/bugreport.cgi) after checking the Bug Parade for duplicates. Include your program and the following diagnostic in your report. Thank you.
java.lang.StackOverflowError
        at com.sun.tools.javac.v8.parser.Scanner.nextToken(Scanner.java:1022)
        at com.sun.tools.javac.v8.parser.Parser.accept(Parser.java:212)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1203)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1216)
        at com.sun.tools.javac.v8.parser.Parser.statement(Parser.java:1356)
        at com.sun.tools.javac.v8.parser.Parser.blockStatements(Parser.java:1272)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1204)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1216)
        at com.sun.tools.javac.v8.parser.Parser.statement(Parser.java:1356)
        at com.sun.tools.javac.v8.parser.Parser.blockStatements(Parser.java:1272)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1204)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1216)
        at com.sun.tools.javac.v8.parser.Parser.statement(Parser.java:1356)
        at com.sun.tools.javac.v8.parser.Parser.blockStatements(Parser.java:1272)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1204)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1216)
        at com.sun.tools.javac.v8.parser.Parser.statement(Parser.java:1356)
        at com.sun.tools.javac.v8.parser.Parser.blockStatements(Parser.java:1272)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1204)
        at com.sun.tools.javac.v8.parser.Parser.block(Parser.java:1216)
        at com.sun.tools.javac.v8.parser.Parser.statement(Parser.java:1356)
        at com.sun.tools.javac.v8.parser.Parser.blockStatements(Parser.java:1272)
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crash too big to attach here.

This is a corner case and an internal threshold -crossing need not make the tool crash. Perhaps an exception handler reporting this issue would be good, with some graceful exiting. Can consider fix for Tiger.