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Copy of #2751.
Having discussed this with Nick a bit more over email, he suggested that
package execution could actually be properly supported by looking for a
__main__ module inside the package and executing it instead. This is
consistent with the way .zip archives are executed and would neatly
resolve this problem. I attached a simple patch implementing this.
Nick also said that fixing this might be considered a new feature and
might have to wait until 2.7. Given that this worked on Python 2.5,
albeit unintentionally, I'd argue that this is closer to a fix of a
somewhat buggy Python 2.5 feature than a new feature in 2.6.

Added revised version of patch with test cases and documentation
updates, as well as fixing a potential recursion issue with pathological
packages where __main__ was also a package)

Missed the window for 2.6/3.0. Guido agreed on python-dev that it counts
as a new feature, so it was definitely out for the already-released 2.6,
and also wasn't really an option for the release candidate phase of 3.0.
Assigning to myself for 2.7/3.1 - I'll put it in once the 3.0
maintenance branch has been cut (so I can update both 2.x and 3.x at the
same time.
For 2.6 and 3.0 though, short run scripts such as "python -m jcc.main"
are going to be the order of the day.

Incorporated as:
2.7: r69419
3.1: r69421