Make IDLE's file decode more robust.
1. coding_spec() only looks at first two lines of bytes to avoid
   a UnicodeDecodeError if rest of file is e.g. latin-1
2. coding_spec() handles \n or \r
3. Clarify that locale_encoding is used by calling it that.  However, it's
   still called IOBinding.encoding in other parts of IDLE and that usage
   needs to be checked to verify that's still what is desired.
4. Return None from _decode() if decoding fails.
5. Name the vars representing bytes and strings or chars appropriately.
diff --git a/Lib/idlelib/IOBinding.py b/Lib/idlelib/IOBinding.py
index baf879b..cde2dae 100644
--- a/Lib/idlelib/IOBinding.py
+++ b/Lib/idlelib/IOBinding.py
@@ -22,15 +22,15 @@
     pass
 
 # Encoding for file names
-filesystemencoding = sys.getfilesystemencoding()
+filesystemencoding = sys.getfilesystemencoding()  ### currently unused
 
-encoding = "ascii"
+locale_encoding = 'ascii'
 if sys.platform == 'win32':
     # On Windows, we could use "mbcs". However, to give the user
     # a portable encoding name, we need to find the code page
     try:
-        encoding = locale.getdefaultlocale()[1]
-        codecs.lookup(encoding)
+        locale_encoding = locale.getdefaultlocale()[1]
+        codecs.lookup(locale_encoding)
     except LookupError:
         pass
 else:
@@ -39,25 +39,28 @@
         # loaded, it may not offer nl_langinfo, or CODESET, or the
         # resulting codeset may be unknown to Python. We ignore all
         # these problems, falling back to ASCII
-        encoding = locale.nl_langinfo(locale.CODESET)
-        if encoding is None or encoding is '':
+        locale_encoding = locale.nl_langinfo(locale.CODESET)
+        if locale_encoding is None or locale_encoding is '':
             # situation occurs on Mac OS X
-            encoding = 'ascii'
-        codecs.lookup(encoding)
+            locale_encoding = 'ascii'
+        codecs.lookup(locale_encoding)
     except (NameError, AttributeError, LookupError):
-        # Try getdefaultlocale well: it parses environment variables,
+        # Try getdefaultlocale: it parses environment variables,
         # which may give a clue. Unfortunately, getdefaultlocale has
         # bugs that can cause ValueError.
         try:
-            encoding = locale.getdefaultlocale()[1]
-            if encoding is None or encoding is '':
+            locale_encoding = locale.getdefaultlocale()[1]
+            if locale_encoding is None or locale_encoding is '':
                 # situation occurs on Mac OS X
-                encoding = 'ascii'
-            codecs.lookup(encoding)
+                locale_encoding = 'ascii'
+            codecs.lookup(locale_encoding)
         except (ValueError, LookupError):
             pass
 
-encoding = encoding.lower()
+locale_encoding = locale_encoding.lower()
+
+encoding = locale_encoding  ### KBK 07Sep07  This is used all over IDLE, check!
+                            ### 'encoding' is used below in encode(), check!
 
 coding_re = re.compile("coding[:=]\s*([-\w_.]+)")
 
@@ -110,26 +113,36 @@
 def coding_spec(data):
     """Return the encoding declaration according to PEP 263.
 
-    Raise LookupError if the encoding is declared but unknown.
+    When checking encoded data, only the first two lines should be passed
+    in to avoid a UnicodeDecodeError if the rest of the data is not unicode.
+    The first two lines would contain the encoding specification.
+
+    Raise a LookupError if the encoding is declared but unknown.
     """
     if isinstance(data, bytes):
-        str = data.decode('utf-8')
+        try:
+            lines = data.decode('utf-8')
+        except UnicodeDecodeError:
+            return None
     else:
-        str = data
-    # Only consider the first two lines
-    str = str.split("\n")[:2]
-    str = "\n".join(str)
+        lines = data
+    # consider only the first two lines
+    if '\n' in lines:
+        lst = lines.split('\n')[:2]
+    elif '\r' in lines:
+        lst = lines.split('\r')[:2]
+    else:
+        lst = list(lines)
+    str = '\n'.join(lst)
     match = coding_re.search(str)
     if not match:
         return None
     name = match.group(1)
-    # Check whether the encoding is known
-    import codecs
     try:
         codecs.lookup(name)
     except LookupError:
         # The standard encoding error does not indicate the encoding
-        raise LookupError("Unknown encoding "+name)
+        raise LookupError("Unknown encoding: "+name)
     return name
 
 
@@ -236,12 +249,19 @@
             # open the file in binary mode so that we can handle
             # end-of-line convention ourselves.
             f = open(filename,'rb')
+            two_lines = f.readline() + f.readline()
+            f.seek(0)
             bytes = f.read()
             f.close()
         except IOError as msg:
             tkMessageBox.showerror("I/O Error", str(msg), master=self.text)
             return False
-        chars = self.decode(bytes)
+        chars = self._decode(two_lines, bytes)
+        if chars is None:
+            tkMessageBox.showerror("Decoding Error",
+                                   "File %s\nFailed to Decode" % filename,
+                                   parent=self.text)
+            return False
         # We now convert all end-of-lines to '\n's
         firsteol = self.eol_re.search(chars)
         if firsteol:
@@ -257,25 +277,23 @@
         self.updaterecentfileslist(filename)
         return True
 
-    def decode(self, chars):
-        """Create a Unicode string
-
-        If that fails, let Tcl try its best
-        """
+    def _decode(self, two_lines, bytes):
+        "Create a Unicode string."
+        chars = None
         # Check presence of a UTF-8 signature first
-        if chars.startswith(BOM_UTF8):
+        if bytes.startswith(BOM_UTF8):
             try:
-                chars = chars[3:].decode("utf-8")
-            except UnicodeError:
+                chars = bytes[3:].decode("utf-8")
+            except UnicodeDecodeError:
                 # has UTF-8 signature, but fails to decode...
-                return chars
+                return None
             else:
                 # Indicates that this file originally had a BOM
                 self.fileencoding = 'BOM'
                 return chars
         # Next look for coding specification
         try:
-            enc = coding_spec(chars)
+            enc = coding_spec(two_lines)
         except LookupError as name:
             tkMessageBox.showerror(
                 title="Error loading the file",
@@ -283,24 +301,37 @@
                 "installation. The file may not display correctly" % name,
                 master = self.text)
             enc = None
+        except UnicodeDecodeError:
+            return None
         if enc:
             try:
-                return str(chars, enc)
-            except UnicodeError:
+                chars = str(bytes, enc)
+                self.fileencoding = enc
+                return chars
+            except UnicodeDecodeError:
                 pass
-        # If it is ASCII, we need not to record anything
+        # Try ascii:
         try:
-            return str(chars, 'ascii')
-        except UnicodeError:
+            chars = str(bytes, 'ascii')
+            self.fileencoding = None
+            return chars
+        except UnicodeDecodeError:
+            pass
+        # Try utf-8:
+        try:
+            chars = str(bytes, 'utf-8')
+            self.fileencoding = 'utf-8'
+            return chars
+        except UnicodeDecodeError:
             pass
         # Finally, try the locale's encoding. This is deprecated;
         # the user should declare a non-ASCII encoding
         try:
-            chars = str(chars, encoding)
-            self.fileencoding = encoding
-        except UnicodeError:
+            chars = str(bytes, locale_encoding)
+            self.fileencoding = locale_encoding
+        except UnicodeDecodeError:
             pass
-        return chars
+        return chars  # None on failure
 
     def maybesave(self):
         if self.get_saved():
@@ -383,8 +414,9 @@
             return chars.encode('ascii')
         except UnicodeError:
             pass
-        # If there is an encoding declared, try this first.
+        # Check if there is an encoding declared
         try:
+            # a string, let coding_spec slice it to the first two lines
             enc = coding_spec(chars)
             failed = None
         except LookupError as msg:
@@ -509,7 +541,6 @@
             self.opendialog = tkFileDialog.Open(master=self.text,
                                                 filetypes=self.filetypes)
         filename = self.opendialog.show(initialdir=dir, initialfile=base)
-        assert isinstance(filename, str)
         return filename
 
     def defaultfilename(self, mode="open"):