--- a/hotspot/src/share/vm/c1/c1_Compilation.cpp	Fri Nov 12 09:51:43 2010 -0800
+++ b/hotspot/src/share/vm/c1/c1_Compilation.cpp	Tue Nov 16 15:57:16 2010 -0800
@@ -471,7 +471,14 @@
   _exception_info_list = new ExceptionInfoList();
   _implicit_exception_table.set_size(0);
   compile_method();
-  if (is_profiling() && _would_profile) {
+  if (bailed_out()) {
+    _env->record_method_not_compilable(bailout_msg(), !TieredCompilation);
+    if (is_profiling()) {
+      // Compilation failed, create MDO, which would signal the interpreter
+      // to start profiling on its own.
+      _method->build_method_data();
+    }
+  } else if (is_profiling() && _would_profile) {
     ciMethodData *md = method->method_data();
     assert (md != NULL, "Should have MDO");
     md->set_would_profile(_would_profile);

--- a/hotspot/src/share/vm/compiler/compileBroker.cpp	Fri Nov 12 09:51:43 2010 -0800
+++ b/hotspot/src/share/vm/compiler/compileBroker.cpp	Tue Nov 16 15:57:16 2010 -0800
@@ -1535,7 +1535,7 @@
       //assert(false, "compiler should always document failure");
       // The compiler elected, without comment, not to register a result.
       // Do not attempt further compilations of this method.
-      ci_env.record_method_not_compilable("compile failed");
+      ci_env.record_method_not_compilable("compile failed", !TieredCompilation);
     }
 
     if (ci_env.failing()) {
@@ -1544,15 +1544,8 @@
       if (PrintCompilation) {
         const char* reason = ci_env.failure_reason();
         if (compilable == ciEnv::MethodCompilable_not_at_tier) {
-          if (is_highest_tier_compile(ci_env.comp_level())) {
-            // Already at highest tier, promote to not compilable.
-            compilable = ciEnv::MethodCompilable_never;
-          } else {
             tty->print_cr("%3d   COMPILE SKIPPED: %s (retry at different tier)", compile_id, reason);
-          }
-        }
-
-        if (compilable == ciEnv::MethodCompilable_never) {
+        } else if (compilable == ciEnv::MethodCompilable_never) {
           tty->print_cr("%3d   COMPILE SKIPPED: %s (not retryable)", compile_id, reason);
         } else if (compilable == ciEnv::MethodCompilable) {
           tty->print_cr("%3d   COMPILE SKIPPED: %s", compile_id, reason);

--- a/hotspot/src/share/vm/runtime/simpleThresholdPolicy.cpp	Fri Nov 12 09:51:43 2010 -0800
+++ b/hotspot/src/share/vm/runtime/simpleThresholdPolicy.cpp	Tue Nov 16 15:57:16 2010 -0800
@@ -176,11 +176,11 @@
   if (level == CompLevel_none) {
     return;
   }
-  // Check if the method can be compiled, if not - try different levels.
+  // Check if the method can be compiled. If it cannot be compiled with C1, continue profiling
+  // in the interpreter and then compile with C2 (the transition function will request that,
+  // see common() ). If the method cannot be compiled with C2 but still can with C1, compile it with
+  // pure C1.
   if (!can_be_compiled(mh, level)) {
-    if (level < CompLevel_full_optimization && can_be_compiled(mh, CompLevel_full_optimization)) {
-      compile(mh, bci, CompLevel_full_optimization, THREAD);
-    }
     if (level == CompLevel_full_optimization && can_be_compiled(mh, CompLevel_simple)) {
         compile(mh, bci, CompLevel_simple, THREAD);
     }