Two more patches by Tony Lownds (SF# 1607548).

(1)
Combines the code paths for MAKE_FUNCTION and MAKE_CLOSURE.
Fixes a crash where functions with closures and either annotations or
keyword-only arguments result in MAKE_CLOSURE, but only
MAKE_FUNCTION has the code to handle annotations or keyword-only
arguments.
Includes enough tests to trigger the bug.

(2)
Change peepholer to not bail in the presence of EXTENDED_ARG +
MAKE_FUNCTION.
Enforce the natural 16-bit limit of annotations in compile.c.

Also update Misc/NEWS with the "input = raw_input" change.
diff --git a/Python/ceval.c b/Python/ceval.c
index 86dcea2..fe5de03 100644
--- a/Python/ceval.c
+++ b/Python/ceval.c
@@ -2236,6 +2236,7 @@
 		    break;
 		}
 
+		case MAKE_CLOSURE:		
 		case MAKE_FUNCTION:
 		{
 		    int posdefaults = oparg & 0xff;
@@ -2245,6 +2246,12 @@
 			v = POP(); /* code object */
 			x = PyFunction_New(v, f->f_globals);
 			Py_DECREF(v);
+			
+			if (x != NULL && opcode == MAKE_CLOSURE) {
+				v = POP();
+				err = PyFunction_SetClosure(x, v);
+				Py_DECREF(v);
+			}
 
 			if (x != NULL && num_annotations > 0) {
 				Py_ssize_t name_ix;
@@ -2308,34 +2315,6 @@
 			break;
 		}
 
-		case MAKE_CLOSURE:
-		{
-			v = POP(); /* code object */
-			x = PyFunction_New(v, f->f_globals);
-			Py_DECREF(v);
-			if (x != NULL) {
-				v = POP();
-				err = PyFunction_SetClosure(x, v);
-				Py_DECREF(v);
-			}
-			if (x != NULL && oparg > 0) {
-				v = PyTuple_New(oparg);
-				if (v == NULL) {
-					Py_DECREF(x);
-					x = NULL;
-					break;
-				}
-				while (--oparg >= 0) {
-					w = POP();
-					PyTuple_SET_ITEM(v, oparg, w);
-				}
-				err = PyFunction_SetDefaults(x, v);
-				Py_DECREF(v);
-			}
-			PUSH(x);
-			break;
-		}
-
 		case BUILD_SLICE:
 			if (oparg == 3)
 				w = POP();
diff --git a/Python/compile.c b/Python/compile.c
index ed0bdcf..7f0fc50 100644
--- a/Python/compile.c
+++ b/Python/compile.c
@@ -836,6 +836,8 @@
 			return -NARGS(oparg)-2;
 		case MAKE_FUNCTION:
 			return -NARGS(oparg) - ((oparg >> 16) & 0xffff);
+		case MAKE_CLOSURE:
+			return -1 - NARGS(oparg) - ((oparg >> 16) & 0xffff);
 #undef NARGS
 		case BUILD_SLICE:
 			if (oparg == 3)
@@ -843,8 +845,6 @@
 			else
 				return -1;
 
-		case MAKE_CLOSURE:
-			return -oparg;
 		case LOAD_CLOSURE:
 			return 1;
 		case LOAD_DEREF:
@@ -1367,8 +1367,12 @@
 compiler_visit_annotations(struct compiler *c, arguments_ty args,
                            expr_ty returns)
 {
-	/* push arg annotations and a list of the argument names. return the #
-	   of items pushed. this is out-of-order wrt the source code. */
+	/* Push arg annotations and a list of the argument names. Return the #
+	   of items pushed. The expressions are evaluated out-of-order wrt the 
+	   source code. 
+	   
+	   More than 2^16-1 annotations is a SyntaxError. Returns -1 on error.
+	   */
 	static identifier return_str;
 	PyObject *names;
 	int len;
@@ -1399,6 +1403,12 @@
 	}
 
 	len = PyList_GET_SIZE(names);
+	if (len > 65534) {
+		/* len must fit in 16 bits, and len is incremented below */
+		PyErr_SetString(PyExc_SyntaxError,
+				"too many annotations");
+		goto error;
+	}	
 	if (len) {
 		/* convert names to a tuple and place on stack */
 		PyObject *elt;
@@ -1449,6 +1459,9 @@
 	if (args->defaults)
 		VISIT_SEQ(c, expr, args->defaults);
 	num_annotations = compiler_visit_annotations(c, args, returns);
+	if (num_annotations < 0)
+		return 0;
+	assert((num_annotations & 0xFFFF) == num_annotations);
 
 	if (!compiler_enter_scope(c, s->v.FunctionDef.name, (void *)s,
 				  s->lineno))
diff --git a/Python/peephole.c b/Python/peephole.c
index 28e4c4c..f2e0c0b 100644
--- a/Python/peephole.c
+++ b/Python/peephole.c
@@ -261,10 +261,12 @@
    The consts object should still be in list form to allow new constants 
    to be appended.
 
-   To keep the optimizer simple, it bails out (does nothing) for code
-   containing extended arguments or that has a length over 32,700.  That 
-   allows us to avoid overflow and sign issues.	 Likewise, it bails when
-   the lineno table has complex encoding for gaps >= 255.
+   To keep the optimizer simple, it bails out (does nothing) for code that
+   has a length over 32,700, and does not calculate extended arguments. 
+   That allows us to avoid overflow and sign issues. Likewise, it bails when
+   the lineno table has complex encoding for gaps >= 255. EXTENDED_ARG can
+   appear before MAKE_FUNCTION; in this case both opcodes are skipped.
+   EXTENDED_ARG preceding any other opcode causes the optimizer to bail.
 
    Optimizations are restricted to simple transformations occuring within a
    single basic block.	All transformations keep the code size the same or 
@@ -535,7 +537,11 @@
 				break;
 
 			case EXTENDED_ARG:
-				goto exitUnchanged;
+				if (codestr[i+3] != MAKE_FUNCTION)
+					goto exitUnchanged;
+				/* don't visit MAKE_FUNCTION as GETARG will be wrong */
+				i += 3;
+				break;
 
 				/* Replace RETURN LOAD_CONST None RETURN with just RETURN */
 				/* Remove unreachable JUMPs after RETURN */