--- a/src/ChangeLog	Sun May 04 21:45:47 2008 -0400
+++ b/src/ChangeLog	Sun May 04 23:36:31 2008 -0400
@@ -1,7 +1,8 @@
 2008-05-04  John W. Eaton  <jwe@octave.org>
 
-	* pt-cmd.cc (tree_function_def::eval): Only define command-line
-	function if we are executing in the top-level scope.
+	* parse.y (frob_function): Don't install subfunctions here.
+	(finish_function): Handle subfunctions here.
+	Conditionally define tree_function_def object here.
 
 	* symtab.h (symbol_table::fcn_info::fcn_info_rep::find_function):
 	Initialize args_evaluated.

--- a/src/parse.y	Sun May 04 21:45:47 2008 -0400
+++ b/src/parse.y	Sun May 04 23:36:31 2008 -0400
@@ -2529,21 +2529,7 @@
       help_buf.pop ();
     }
 
-  if (lexer_flags.parsing_nested_function)
-    {
-      std::string nm = fcn->name ();
-
-      fcn->mark_as_nested_function ();
-
-      symbol_table::install_subfunction (nm, octave_value (fcn));
-
-      if (lexer_flags.parsing_nested_function < 0)
-	{
-	  lexer_flags.parsing_nested_function = 0;
-	  symbol_table::reset_parent_scope ();
-	}
-    }
-  else if (reading_fcn_file)
+  if (reading_fcn_file && ! lexer_flags.parsing_nested_function)
     curr_fcn_ptr = fcn;
   else
     curr_fcn_ptr = 0;
@@ -2566,11 +2552,31 @@
 	fcn->stash_leading_comment (lc);
 
       fcn->define_ret_list (ret_list);
+
+      if (lexer_flags.parsing_nested_function)
+	{
+	  std::string nm = fcn->name ();
+
+	  fcn->mark_as_nested_function ();
+
+	  symbol_table::install_subfunction (nm, octave_value (fcn));
+
+	  if (lexer_flags.parsing_nested_function < 0)
+	    {
+	      lexer_flags.parsing_nested_function = 0;
+	      symbol_table::reset_parent_scope ();
+	    }
+	}
+      else if (! curr_fcn_ptr)
+	{
+	  // FIXME -- there should be a better way to indicate that we
+	  // should create a tree_function_def object other than
+	  // looking at curr_fcn_ptr...
+
+	  retval = new tree_function_def (fcn);
+	}
     }
 
-  if (! curr_fcn_ptr)
-    retval = new tree_function_def (fcn);
-
   return retval;
 }
 

--- a/src/pt-cmd.cc	Sun May 04 21:45:47 2008 -0400
+++ b/src/pt-cmd.cc	Sun May 04 23:36:31 2008 -0400
@@ -47,21 +47,18 @@
 void
 tree_function_def::eval (void)
 {
-  if (symbol_table::at_top_level ())
-    {
-      octave_function *f = function ();
+  octave_function *f = function ();
 
-      if (f)
-	{
-	  std::string nm = f->name ();
+  if (f)
+    {
+      std::string nm = f->name ();
 
-	  symbol_table::install_cmdline_function (nm, fcn);
+      symbol_table::install_cmdline_function (nm, fcn);
 
-	  // Make sure that any variable with the same name as the new
-	  // function is cleared.
+      // Make sure that any variable with the same name as the new
+      // function is cleared.
 
-	  symbol_table::varref (nm) = octave_value ();
-	}
+      symbol_table::varref (nm) = octave_value ();
     }
 }