diff -r 8d0b2c7d60a1 -r b3b5eadd2bca langtools/src/share/classes/com/sun/tools/javac/comp/Attr.java
--- a/langtools/src/share/classes/com/sun/tools/javac/comp/Attr.java	Wed Apr 09 14:05:24 2008 +0100
+++ b/langtools/src/share/classes/com/sun/tools/javac/comp/Attr.java	Wed Apr 09 14:45:50 2008 +0100
@@ -1878,8 +1878,10 @@
         boolean varArgs = env.info.varArgs;
         tree.sym = sym;
 
-        if (site.tag == TYPEVAR && !isType(sym) && sym.kind != ERR)
-            site = capture(site.getUpperBound());
+        if (site.tag == TYPEVAR && !isType(sym) && sym.kind != ERR) {
+            while (site.tag == TYPEVAR) site = site.getUpperBound();
+            site = capture(site);
+        }
 
         // If that symbol is a variable, ...
         if (sym.kind == VAR) {