Many changes.

Change default alloc size for uncompressing to 16K.

Remove comment about core dumps when an invalid window sizes is used.
This bug has been fixed in zlib 1.0.4.

Two new optional arguments to decompress, wbits and bufsize.  wbits
specifies the window size and bufsize specifies the initial output
string size.

In decompression code -- decompress and decompressobj methods -- use a
Python string (and _PyString_Resize) to collect the uncompressed
stream.  Replaces a separate buffer that was copied into a string.

Fix bug in decompress that caused it to always realloc the buffer when
it was finished decompressing.

Modernized handling of optional arguments to compressobj.

Updated doc strings.
diff --git a/Modules/zlibmodule.c b/Modules/zlibmodule.c
index 1edfab4..374871e 100644
--- a/Modules/zlibmodule.c
+++ b/Modules/zlibmodule.c
@@ -13,7 +13,7 @@
 #define DEF_WBITS MAX_WBITS
 
 /* The output buffer will be increased in chunks of ADDCHUNK bytes. */
-#define ADDCHUNK 2048
+#define DEFAULTALLOC 16*1024
 #define PyInit_zlib initzlib
 
 staticforward PyTypeObject Comptype;
@@ -144,8 +144,9 @@
 }
 
 static char decompress__doc__[] = 
-"decompress(string) -- Decompress the data in string, returning "
-"a string containing the decompressed data."
+"decompress(string) -- Decompress the data in string, returning a string containing the decompressed data.\n"
+"decompress(string, wbits) -- Decompress the data in string with a window buffer size of wbits.\n"
+"decompress(string, wbits, bufsize) -- Decompress the data in string with a window buffer size of wbits and an initial output buffer size of bufsize.\n"
 ;
 
 static PyObject *
@@ -153,27 +154,27 @@
         PyObject *self;
         PyObject *args;
 {
-  PyObject *ReturnVal;
-  Byte *input, *output;
+  PyObject *result_str;
+  Byte *input;
   int length, err;
+  int wsize=DEF_WBITS, r_strlen=DEFAULTALLOC;
   z_stream zst;
-  if (!PyArg_ParseTuple(args, "s#", &input, &length))
+  if (!PyArg_ParseTuple(args, "s#|ii", &input, &length, &wsize, &r_strlen))
     return NULL;
   
   zst.avail_in=length;
-  zst.avail_out=length=length*2;
-  output=(Byte*)malloc(zst.avail_out);
-  if (output==NULL) 
-    {
+  zst.avail_out=r_strlen;
+  if (!(result_str = PyString_FromStringAndSize(NULL, r_strlen)))
+  {
       PyErr_SetString(PyExc_MemoryError,
                       "Can't allocate memory to decompress data");
       return NULL;
-    }
+  }
   zst.zalloc=(alloc_func)NULL;
   zst.zfree=(free_func)Z_NULL;
-  zst.next_out=(Byte *)output;
+  zst.next_out=(Byte *)PyString_AsString(result_str);
   zst.next_in =(Byte *)input;
-  err=inflateInit(&zst);
+  err=inflateInit2(&zst, wsize);
   switch(err)
     {
     case(Z_OK):
@@ -181,7 +182,6 @@
     case(Z_MEM_ERROR):      
       PyErr_SetString(PyExc_MemoryError,
                       "Out of memory while decompressing data");
-      free(output);
       return NULL;
     default:
       {
@@ -191,7 +191,6 @@
                 err, zst.msg);
         PyErr_SetString(ZlibError, temp);
         inflateEnd(&zst);
-        free(output);
         return NULL;
       }
     }
@@ -200,24 +199,25 @@
       err=inflate(&zst, Z_FINISH);
       switch(err) 
         {
-        case(Z_OK):
         case(Z_STREAM_END):
-          output=(Byte *)realloc(output, length+ADDCHUNK);
-          if (output==NULL) 
+	    break;
+        case(Z_OK):
+	    /* need more memory */
+	    if (_PyString_Resize(&result_str, r_strlen << 1) == -1)
             {
               PyErr_SetString(PyExc_MemoryError,
                               "Out of memory while decompressing data");
               inflateEnd(&zst);
               return NULL;
             }
-          zst.next_out=output+length;
-          zst.avail_out=ADDCHUNK;
-          length += ADDCHUNK;
-          break;
+	    zst.next_out = PyString_AsString(result_str) + r_strlen;
+	    zst.avail_out=r_strlen;
+	    r_strlen = r_strlen << 1;
+	    break;
         default:
           {
             char temp[500];
-	if (zst.msg==Z_NULL) zst.msg="";
+	    if (zst.msg==Z_NULL) zst.msg="";
             sprintf(temp, "Error %i while decompressing data: [%s]",
                     err, zst.msg);
             PyErr_SetString(ZlibError, temp);
@@ -235,12 +235,10 @@
       sprintf(temp, "Error %i while finishing data decompression [%s]",
               err, zst.msg);
       PyErr_SetString(ZlibError, temp);
-      free(output);
       return NULL;
     }
-  ReturnVal=PyString_FromStringAndSize((char *)output, zst.total_out);
-  free(output);
-  return ReturnVal;
+  _PyString_Resize(&result_str, zst.total_out);
+  return result_str;
 }
 
 static PyObject *
@@ -251,31 +249,11 @@
   compobject *self;
   int level=Z_DEFAULT_COMPRESSION, method=DEFLATED;
   int wbits=MAX_WBITS, memLevel=DEF_MEM_LEVEL, strategy=0, err;
-  /* XXX Argh!  Is there a better way to have multiple levels of */
-  /* optional arguments? */
-  if (!PyArg_ParseTuple(args, "iiiii", &level, &method, &wbits, &memLevel, &strategy))
-    {
-     PyErr_Clear();
-     if (!PyArg_ParseTuple(args, "iiii", &level, &method, &wbits,
-			   &memLevel))
-       {     
-	PyErr_Clear();
-	if (!PyArg_ParseTuple(args, "iii", &level, &method, &wbits))
-	  {
-	   PyErr_Clear();
-	   if (!PyArg_ParseTuple(args, "ii", &level, &method))
-	     {
-	      PyErr_Clear();
-	      if (!PyArg_ParseTuple(args, "i", &level))
-		{
-		 PyErr_Clear();
-		 if (!PyArg_ParseTuple(args, ""))
-		   return (NULL);
-		}
-	     }
-	  }
-       }
-    }
+
+  if (!PyArg_ParseTuple(args, "|iiiii", &level, &method, &wbits,
+			&memLevel, &strategy))
+      return NULL;
+
   self=newcompobject(&Comptype);
   if (self==NULL) return(NULL);
   self->zst.zalloc=(alloc_func)NULL;
@@ -324,9 +302,6 @@
   if (self==NULL) return(NULL);
   self->zst.zalloc=(alloc_func)NULL;
   self->zst.zfree=(free_func)Z_NULL;
-  /* XXX If illegal values of wbits are allowed to get here, Python
-     coredumps, instead of raising an exception as it should. 
-     This is a bug in zlib 0.95; I have reported it. */
   err=inflateInit2(&self->zst, wbits);
   switch(err)
     {
@@ -391,7 +366,7 @@
   self->zst.next_in=input;
   do 
     {
-      buf=(Byte *)realloc(buf, length+ADDCHUNK);
+      buf=(Byte *)realloc(buf, length << 1);
       if (buf==NULL) 
 	{
 	  PyErr_SetString(PyExc_MemoryError,
@@ -399,8 +374,8 @@
 	  return NULL;
 	}
       self->zst.next_out=buf+length;
-      self->zst.avail_out=ADDCHUNK;
-      length += ADDCHUNK;
+      self->zst.avail_out=length;
+      length = length << 1;
       err=deflate(&(self->zst), Z_NO_FLUSH);
     } while (self->zst.avail_in!=0 && err==Z_OK);
   if (err!=Z_OK) 
@@ -429,30 +404,35 @@
         compobject *self;
         PyObject *args;
 {
-  int length=0, err, inplen;
-  Byte *buf=NULL;
+  int length, err, inplen;
   PyObject *RetVal;
   Byte *input;
   if (!PyArg_ParseTuple(args, "s#", &input, &inplen))
     return NULL;
+  RetVal = PyString_FromStringAndSize(NULL, DEFAULTALLOC);
   self->zst.avail_in=inplen;
   self->zst.next_in=input;
-  do 
-    {
-      buf=(Byte *)realloc(buf, length+ADDCHUNK);
-      if (buf==NULL) 
-	{
-	  PyErr_SetString(PyExc_MemoryError,
-			  "Can't allocate memory to decompress data");
-	  return NULL;
-	}
-      self->zst.next_out=buf+length;
-      self->zst.avail_out=ADDCHUNK;
-      length += ADDCHUNK;
+  self->zst.avail_out = length = DEFAULTALLOC;
+  self->zst.next_out = PyString_AsString(RetVal);
+  err = Z_OK;
 
-      err=inflate(&(self->zst), Z_NO_FLUSH);
-      
-    } while (self->zst.avail_in!=0 && err==Z_OK);
+  while (self->zst.avail_in != 0 && err == Z_OK)
+  {
+      err = inflate(&(self->zst), Z_NO_FLUSH);
+      if (err == Z_OK && self->zst.avail_out <= 0) 
+      {
+	  if (_PyString_Resize(&RetVal, length << 1) == -1)
+	  {
+	      PyErr_SetString(PyExc_MemoryError,
+			      "Can't allocate memory to compress data");
+	      return NULL;
+	  }
+	  self->zst.next_out = PyString_AsString(RetVal) + length;
+	  self->zst.avail_out = length;
+	  length = length << 1;
+      }
+  }
+
   if (err!=Z_OK && err!=Z_STREAM_END) 
     {
       char temp[500];
@@ -462,8 +442,7 @@
       PyErr_SetString(ZlibError, temp);
       return NULL;
     }
-  RetVal=PyString_FromStringAndSize((char *)buf, self->zst.next_out-buf);
-  free(buf);
+  _PyString_Resize(&RetVal, self->zst.total_out);
   return RetVal;
 }
 
@@ -486,7 +465,7 @@
   self->zst.avail_in=0;
   do 
     {
-      buf=(Byte *)realloc(buf, length+ADDCHUNK);
+      buf=(Byte *)realloc(buf, length << 1);
       if (buf==NULL) 
 	{
 	  PyErr_SetString(PyExc_MemoryError,
@@ -494,8 +473,8 @@
 	  return NULL;
 	}
       self->zst.next_out=buf+length;
-      self->zst.avail_out=ADDCHUNK;
-      length += ADDCHUNK;
+      self->zst.avail_out=length;
+      length = length << 1;
       err=deflate(&(self->zst), Z_FINISH);
     } while (err==Z_OK);
   if (err!=Z_STREAM_END) 
@@ -533,26 +512,32 @@
         PyObject *args;
 {
   int length=0, err;
-  Byte *buf=NULL;
   PyObject *RetVal;
   
   if (!PyArg_NoArgs(args))
-    return NULL;
+      return NULL;
+  RetVal = PyString_FromStringAndSize(NULL, DEFAULTALLOC);
   self->zst.avail_in=0;
-  do 
-    {
-      buf=(Byte *)realloc(buf, length+ADDCHUNK);
-      if (buf==NULL) 
-	{
-	  PyErr_SetString(PyExc_MemoryError,
-			  "Can't allocate memory to decompress data");
-	  return NULL;
-	}
-      self->zst.next_out=buf+length;
-      self->zst.avail_out = ADDCHUNK;
-      length += ADDCHUNK;
-      err=inflate(&(self->zst), Z_FINISH);
-    } while (err==Z_OK);
+  self->zst.next_out = PyString_AsString(RetVal);
+  length = self->zst.avail_out = DEFAULTALLOC;
+
+  err = Z_OK;
+  while (err == Z_OK)
+  {
+      err = inflate(&(self->zst), Z_FINISH);
+      if (err == Z_OK && self->zst.avail_out == 0) 
+      {
+	  if (_PyString_Resize(&RetVal, length << 1) == -1)
+	  {
+	      PyErr_SetString(PyExc_MemoryError,
+			      "Can't allocate memory to decompress data");
+	      return NULL;
+	  }
+	  self->zst.next_out = PyString_AsString(RetVal) + length;
+	  self->zst.avail_out = length;
+	  length = length << 1;
+      }
+  }
   if (err!=Z_STREAM_END) 
     {
       char temp[500];
@@ -562,8 +547,6 @@
       PyErr_SetString(ZlibError, temp);
       return NULL;
     }
-  RetVal=PyString_FromStringAndSize((char *)buf, self->zst.next_out - buf);
-  free(buf);
   err=inflateEnd(&(self->zst));
   if (err!=Z_OK) 
     {
@@ -730,6 +713,7 @@
 "compressobj([level]) -- Return a compressor object.\n"
 "crc32(string) -- Compute a CRC-32 checksum.\n"
 "crc32(string, start) -- Compute a CRC-32 checksum using a given starting value.\n"
+"decompress(string,[wbites],[bufsize]) -- Decompresses a compressed string.\n"
 "decompressobj([wbits]) -- Return a decompressor object (wbits=window buffer size).\n\n"
 "Compressor objects support compress() and flush() methods; decompressor \n"
 "objects support decompress() and flush()."