Index: src/pmc/closure.pmc
===================================================================
--- src/pmc/closure.pmc	(revision 14848)
+++ src/pmc/closure.pmc	(working copy)
@@ -92,46 +92,13 @@
         outer_sub = sub->outer_sub;
         if (sub->outer_ctx) {
             /* during newclosure, outer's ctx was stored in
-             * sub->outer_ctx
+             * sub->outer_ctx.  we need to copy it into our ctx.
              */
-            sub->ctx->outer_ctx = sub->outer_ctx;
+            CONTEXT(INTERP->ctx)->outer_ctx = sub->outer_ctx;
         }
-        else if ((PObj_get_FLAGS(outer_sub) & SUB_FLAG_IS_OUTER) &&
-            PMC_sub(outer_sub)->ctx) {
-            /* the sub was invoked earlier - it still has the context
-             * due to the SUB_FLAG_IS_OUTER flag
-             */
-            sub->outer_ctx = sub->ctx->outer_ctx = PMC_sub(outer_sub)->ctx;
-        }
         else {
-            /* closure is just invoked - located :outer's ctx */
-            parrot_context_t *caller = sub->ctx->caller_ctx;
-            while (caller) {
-                if (caller->current_sub == outer_sub) {
-                    cont = caller->current_cont;
-                    cont->vtable = 
-                        interpreter->vtables[enum_class_Continuation];
-                    sub->outer_ctx = sub->ctx->outer_ctx = caller;
-                    caller->ref_count++;
-                    return next;
-                }
-                caller = caller->caller_ctx;
-            }
-            if (!caller) {
-                /* outer has never been invoked, we fake a subroutine call
-                 * which builds the LexPad and return immediately
-                 * this will usually just lead to a Null PMC access
-                 * exception
-                 */
-                INTERP->current_cont = NEED_CONTINUATION;
-                (void)VTABLE_invoke(INTERP, sub->outer_sub, next);
-                caller = CONTEXT(INTERP->ctx);
-                cont = caller->current_cont;
-                cont->vtable = interpreter->vtables[enum_class_Continuation];
-                sub->outer_ctx = sub->ctx->outer_ctx = caller;
-                caller->ref_count++;
-                (void)VTABLE_invoke(INTERP, cont, next);
-            }
+            real_exception(interpreter, NULL, 1,
+                           "Closure sub called without 'newclosure'.\n");
         }
         return next;
     }
Index: src/pmc/sub.pmc
===================================================================
--- src/pmc/sub.pmc	(revision 14848)
+++ src/pmc/sub.pmc	(working copy)
@@ -275,10 +275,6 @@
          * and copy set context variables
          */
         PMC_cont(ccont)->from_ctx = context;
-        /*
-         * set context of the sub
-         */
-        sub->ctx = context;
         if (PObj_get_FLAGS(SELF) & SUB_FLAG_IS_OUTER) {
             /* don't destroy context */
             ccont->vtable = interpreter->vtables[enum_class_Continuation];
Index: include/parrot/sub.h
===================================================================
--- include/parrot/sub.h	(revision 14848)
+++ include/parrot/sub.h	(working copy)
@@ -70,7 +70,7 @@
     PMC      *lex_info;         /* LexInfo PMC */
     PMC      *outer_sub;        /* :outer for closures */
     PMC      *eval_pmc;         /* eval container / NULL */
-    parrot_context_t *ctx;      /* the context this sub is in */
+    parrot_context_t *broken_ctx;      /* the context this sub is in */
 
     /* - end common */
     struct Parrot_Context *outer_ctx;   /* outer context, if a closure */
Index: t/pmc/exception.t
===================================================================
--- t/pmc/exception.t	(revision 14848)
+++ t/pmc/exception.t	(working copy)
@@ -728,7 +728,8 @@
     a = 42
     print "main\n"
     .const .Sub at_exit = "exit_handler"
-    pushaction at_exit
+    $P0 = newclosure at_exit
+    pushaction $P0
     .return()
 .end
 
@@ -756,7 +757,8 @@
     push_eh h
     print "main\n"
     .const .Sub at_exit = "exit_handler"
-    pushaction at_exit
+    $P0 = newclosure at_exit
+    pushaction $P0
     $P1 = new .Exception
     throw $P1
     print "never 1\n"
@@ -783,10 +785,12 @@
 
 pir_output_is(<<'CODE', <<'OUTPUT', "exit_handler via exit exception");
 .sub main :main
-    .local pmc a
+    .local pmc a, exit_handler
     .lex 'a', a
     a = new .Integer
     a = 42
+    .const .Sub exit_handler_sub = "exit_handler"
+    exit_handler = newclosure exit_handler_sub
     push_eh handler
     exit 0
 handler:
Index: t/op/lexicals.t
===================================================================
--- t/op/lexicals.t	(revision 14848)
+++ t/op/lexicals.t	(working copy)
@@ -364,7 +364,9 @@
 
 pir_output_is(<<'CODE', <<'OUTPUT', 'get_outer');
 .sub "main"
-    foo()
+	.const .Sub foo = "foo"
+	$P0 = newclosure foo
+	$P0()
 .end
 .sub foo :outer('main')
     .include "interpinfo.pasm"
@@ -379,10 +381,14 @@
 
 pir_output_is(<<'CODE', <<'OUTPUT', 'get_outer 2');
 .sub "main"
-    foo()
+	.const .Sub foo = "foo"
+	$P0 = newclosure foo
+	$P0()
 .end
 .sub foo  :outer('main')
-    bar()
+	.const .Sub bar = "bar"
+	$P0 = newclosure bar
+	$P0()
 .end
 .sub bar   :outer('foo')
     .include "interpinfo.pasm"
@@ -820,7 +826,9 @@
     .lex '$x', $P0
     $P0 = new .Integer
     $P0 = 5
-    anon_1()
+    .const .Sub $P1 = 'anon_1'
+    $P2 = newclosure $P1
+    $P2()
 .end
 
 .sub anon_1 :anon :outer(main)
@@ -839,11 +847,17 @@
 pir_output_like(<<'CODE', <<'OUTPUT', 'get non existing');
 .sub "main" :main
     .lex 'a', $P0
-    foo()
+    .local pmc sub_foo, closure_foo
+    .const .Sub sub_foo = "foo"
+    closure_foo = newclosure sub_foo
+    closure_foo()
 .end
 .sub foo  :outer('main')
     .lex 'b', $P0
-    bar()
+    .local pmc sub_bar, closure_bar
+    .const .Sub sub_bar = "bar"
+    closure_bar = newclosure sub_bar
+    closure_bar()
 .end
 .sub bar   :outer('foo')
     .lex 'c', $P0
@@ -898,8 +912,11 @@
 # f()
 # print "$x\n"
 .sub '&main' :main :anon
-    .local pmc sx
+    .local pmc sx, sub_f, closure_f
     .lex '$x', sx
+    .const .Sub sub_f = "raw_&f"
+    closure_f = newclosure sub_f
+    store_global '&f', closure_f
     sx = new .Integer
     sx = 33
     '&f'()
@@ -915,7 +932,7 @@
     print "\n"
 .end
 
-.sub '&f' :outer('&main') 
+.sub 'raw_&f' :outer('&main') 
     $P0 = find_lex '$x'           # find_lex needed
     inc $P0
 .end
@@ -932,8 +949,12 @@
 # g()
 # print "$x\n"
 .sub '&main' :main :anon
-    .local pmc sx
+    .local pmc sx, sub_f, closure_f
     .lex '$x', sx
+    .const .Sub sub_f = "raw_&f"
+    closure_f = newclosure sub_f
+    store_global '&f', closure_f
+
     sx = new .Integer
     sx = -32
     '&g'()
@@ -950,12 +971,12 @@
 
 .end
 
-.sub '&f' :outer('&main') 
+.sub 'raw_&f' :outer('&main') 
     $P0 = find_lex '$x'
     inc $P0
 .end
 
-.sub '&g' :outer('&main') # :outer not needed - no find_lex
+.sub '&g' # :outer not needed - no find_lex
     '&f'()
     '&f'()
 .end
@@ -974,11 +995,15 @@
 .sub '&f' 
     .param pmc x
     .lex '$x', x
+    .local pmc sub_g, closure_g
+    .const .Sub sub_g = "raw_&g"
+    closure_g = newclosure sub_g
+    store_global '&g', closure_g
     $P0 = '&g'(x)
     .return ($P0)
 .end
 
-.sub '&g' :outer('&f')
+.sub 'raw_&g' :outer('&f')
     .param pmc y
     .lex '$y', y
     .local pmc x
@@ -1023,7 +1048,7 @@
     print "never\n"
 .end
 CODE
-/Null PMC access/
+/Closure sub called without 'newclosure'/
 OUTPUT
 
 pir_output_is(<<'CODE', <<'OUTPUT', 'package-scoped closure 5 - autoclose');
@@ -1035,9 +1060,13 @@
 .sub '&f' 
     .param pmc x
     .lex '$x', x
+    .local pmc sub_g, closure_g
+    .const .Sub sub_g = "raw_&g"
+    closure_g = newclosure sub_g
+    store_global '&g', closure_g
 .end
 
-.sub '&g' :outer('&f')
+.sub 'raw_&g' :outer('&f')
     .local pmc x
     x = find_lex '$x'
     print x
@@ -1062,9 +1091,13 @@
 .sub '&f' 
     .param pmc x
     .lex '$x', x
+    .local pmc sub_g, closure_g
+    .const .Sub sub_g = "raw_&g"
+    closure_g = newclosure sub_g
+    store_global '&g', closure_g
 .end
 
-.sub '&g' :outer('&f')
+.sub 'raw_&g' :outer('&f')
     .local pmc x
     x = find_lex '$x'
     print x