--- a/src/ChangeLog
+++ b/src/ChangeLog
@@ -1,3 +1,8 @@
+2008-01-07  John W. Eaton  <jwe@octave.org>
+
+	* parse.y (make_anon_fcn_handle): Don't attempt to convert
+	expression to assignment to __retval__.
+
 2008-01-07  Michael Goffioul <michael.goffioul@gmail.com>
 
 	* ov-builtin.h (octave_builtin): Tag with OCTINTERP_API.

--- a/src/parse.y
+++ b/src/parse.y
@@ -1,7 +1,7 @@
 /*
 
 Copyright (C) 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001,
-              2002, 2003, 2004, 2005, 2006, 2007 John W. Eaton
+              2002, 2003, 2004, 2005, 2006, 2007, 2008 John W. Eaton
 
 This file is part of Octave.
 
@@ -1760,29 +1760,7 @@
 
   symtab_context.pop ();
 
-  if (stmt && stmt->is_expression ())
-    {
-      symbol_table::symbol_record& sr = symbol_table::insert ("__retval__");
-
-      tree_expression *e = stmt->expression ();
-
-      tree_identifier *id = new tree_identifier (sr);
-
-      tree_simple_assignment *asn = new tree_simple_assignment (id, e);
-
-      stmt->set_expression (asn);
-
-      stmt->set_print_flag (false);
-
-      // FIXME -- would like to delete old_stmt here or
-      // replace expression inside it with the new expression we just
-      // created so we don't have to create a new statement at all.
-
-      id = new tree_identifier (sr);
-      tree_decl_elt *elt = new tree_decl_elt (id);
-
-      ret_list = new tree_parameter_list (elt);
-    }
+  stmt->set_print_flag (false);
 
   tree_statement_list *body = new tree_statement_list (stmt);