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Neal has the memory of an elephant or something.
Yes, I dealt with a similar issue where the recursion limit was hit, but 
then normalizing the exception just caused it to hit it again. I thought 
I changed it such that normalizing an exception actually turned off the 
depth check or to raise a pre-defined exception for the recursion depth 
limit.
I don't have time to look at this right now (still on holiday in 
Brussels), but if I remember correctly the last time this came up I 
liked the pre-allocated recursion limit exception.