diff --git a/tconfpy.py b/tconfpy.py
index ed53738..46b0762 100755
--- a/tconfpy.py
+++ b/tconfpy.py
@@ -6,7 +6,7 @@
 # Program Information
 
 PROGNAME = "tconfpy"
-RCSID = "$Id: tconfpy.py,v 1.184 2004/04/27 23:53:35 tundra Exp $"
+RCSID = "$Id: tconfpy.py,v 1.185 2004/05/02 08:06:07 tundra Exp $"
 VERSION = RCSID.split()[2]
 
 # Copyright Information
@@ -738,17 +738,15 @@
 
     #####
     # LITERAL and ENDLITERAL Processing
+    #
     # These get highest precedence because they block everything else.
-    # However, they are ignored within False conditional blocks.
+    # We keep track of them even in False conditional blocks.  This is
+    # so that the text within a literal block does not cause the the
+    # parser to throw a syntax error.
     #####
 
     if line.strip() in (LITERAL, ENDLITERAL):
 
-        if not CondStack[-1][1]:
-            if DEBUG:
-                DebugMsg("dLINEIGNORE", (cfgfile, linenum, orig, dNOTINCLUDE))
-            return
-
         if line.strip() == LITERAL:
             if INLITERAL:
                 WarningMsg("wLITEXTRA", (cfgfile, linenum))
@@ -768,22 +766,42 @@
 
         return
 
-    # We pass lines as-is, with optional variable replacement, in literal blocks
+
+    #####
+    # Process Content Of Literal Blocks
+    #
+    # We pass lines as-is, with optional variable replacement in
+    # literal blocks.  But, only if we're inside a True conditional
+    # block.
+    #####
 
     if INLITERAL:
 
-        if LITERALVARS:
-            line, ref_ok = DerefVar(line, cfgfile, linenum)
+        if CondStack[-1][1]:
 
-        LiteralLines.append(line)
+            if LITERALVARS:
+                line, ref_ok = DerefVar(line, cfgfile, linenum)
 
-        if DEBUG:
-            DebugMsg("dPARSEDLINE", (cfgfile, linenum, orig, line))
+            LiteralLines.append(line)
+
+            if DEBUG:
+                DebugMsg("dPARSEDLINE", (cfgfile, linenum, orig, line))
+
+
+        # Conditional block was false, so just throw away the line,
+        # noting in debug output if requested.
+        
+        else:
+            if DEBUG:
+                DebugMsg("dLINEIGNORE", (cfgfile, linenum, orig, dNOTINCLUDE))
 
         return
 
 
-
+    #####
+    # Process All Other Cases
+    #####
+    
     line = ConditionLine(line)  # Strip out comments and leading/trailing whitespace
     condstate = True            # Results of conditional tests kept here