diff -r 84c44db80d06 -r 217d5a69681a langtools/src/share/classes/com/sun/tools/javac/comp/Check.java
--- a/langtools/src/share/classes/com/sun/tools/javac/comp/Check.java	Thu Aug 19 11:52:58 2010 +0100
+++ b/langtools/src/share/classes/com/sun/tools/javac/comp/Check.java	Thu Aug 19 11:54:25 2010 +0100
@@ -330,7 +330,7 @@
             for (Scope.Entry e = s.next.lookup(c.name);
                  e.scope != null && e.sym.owner == c.owner;
                  e = e.next()) {
-                if (e.sym.kind == TYP &&
+                if (e.sym.kind == TYP && e.sym.type.tag != TYPEVAR &&
                     (e.sym.owner.kind & (VAR | MTH)) != 0 &&
                     c.name != names.error) {
                     duplicateError(pos, e.sym);