diff --git a/racket/src/racket/src/compile.c b/racket/src/racket/src/compile.c
index 2e1bec2e0c..08411a061b 100644
--- a/racket/src/racket/src/compile.c
+++ b/racket/src/racket/src/compile.c
@@ -2824,7 +2824,9 @@ do_let_expand(Scheme_Object *orig_form, Scheme_Comp_Env *origenv, Scheme_Expand_
 
   body = scheme_datum_to_syntax(body, form, form, 0, 0);
   if (scope) body = scheme_stx_add_scope(body, scope, scheme_env_phase(env->genv));
-  SCHEME_EXPAND_OBSERVE_LET_RENAMES(env->observer, vars, body);
+  if (!erec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_LET_RENAMES(env->observer, vars, body);
+  }
 
   /* Pass 2: Expand */
 
@@ -2833,7 +2835,9 @@ do_let_expand(Scheme_Object *orig_form, Scheme_Comp_Env *origenv, Scheme_Expand_
   while (SCHEME_STX_PAIRP(vars)) {
     Scheme_Object *rhs, *rhs_name;
 
-    SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+    if (!erec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+    }
 
     v = SCHEME_STX_CAR(vars);
 
@@ -2897,7 +2901,9 @@ do_let_expand(Scheme_Object *orig_form, Scheme_Comp_Env *origenv, Scheme_Expand_
     first = scheme_datum_to_syntax(first, vs, vs, 0, 1);
   }
 
-  SCHEME_EXPAND_OBSERVE_NEXT_GROUP(env->observer);
+  if (!erec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_NEXT_GROUP(env->observer);
+  }
   scheme_init_expand_recs(erec, drec, &erec1, 1);
   env->value_name = boundname;
   if (!body_block)
@@ -3217,8 +3223,10 @@ do_begin_expand(char *name,
 
   if (SCHEME_STX_NULLP(rest)) {
     if (!zero && scheme_is_toplevel(env)) {
-      SCHEME_EXPAND_OBSERVE_ENTER_LIST(env->observer, form);
-      SCHEME_EXPAND_OBSERVE_EXIT_LIST(env->observer, form);
+      if (!erec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_ENTER_LIST(env->observer, form);
+        SCHEME_EXPAND_OBSERVE_EXIT_LIST(env->observer, form);
+      }
       return orig_form;
     }
     scheme_wrong_syntax(NULL, NULL, form, "empty form not allowed");
@@ -3238,12 +3246,16 @@ do_begin_expand(char *name,
       fst = SCHEME_STX_CAR(rest);
       rest = SCHEME_STX_CDR(rest);
 
-      SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+      if (!erec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+      }
       env->value_name = boundname;
       fst = scheme_expand_expr(fst, env, &erec1, 0);
       env->value_name = NULL;
       rest = scheme_datum_to_syntax(rest, form, form, 0, 0);
-      SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+      if (!erec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+      }
       rest = expand_list(rest, env, erec, drec);
 
       form = cons(fst, rest);
@@ -3589,7 +3601,9 @@ begin_for_syntax_expand(Scheme_Object *orig_form, Scheme_Comp_Env *in_env, Schem
   Scheme_Object *form, *l, *fn, *vec, *dummy;
   Scheme_Comp_Env *env;
 
-  SCHEME_EXPAND_OBSERVE_PRIM_BEGIN_FOR_SYNTAX(in_env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_PRIM_BEGIN_FOR_SYNTAX(in_env->observer);
+  }
 
   form = orig_form;
 
@@ -3598,7 +3612,9 @@ begin_for_syntax_expand(Scheme_Object *orig_form, Scheme_Comp_Env *in_env, Schem
 
   (void)check_form(form, form);
 
-  SCHEME_EXPAND_OBSERVE_PREPARE_ENV(in_env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_PREPARE_ENV(in_env->observer);
+  }
 
   scheme_prepare_exp_env(in_env->genv);
   scheme_prepare_compile_env(in_env->genv->exp_env);
@@ -3836,7 +3852,9 @@ void scheme_bind_syntaxes(const char *where, Scheme_Object *names, Scheme_Object
      but it's not likely that a let-syntax-bound macro is going
      to run lots of times, so JITting is probably not worth it. */
 
-  SCHEME_EXPAND_OBSERVE_NEXT(eenv->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_NEXT(eenv->observer);
+  }
 
   a_expr = a;
   a = eval_letmacro_rhs(a_expr, rhs_env, 
@@ -3903,7 +3921,9 @@ void scheme_bind_syntaxes(const char *where, Scheme_Object *names, Scheme_Object
 
   scheme_merge_undefineds(eenv, rhs_env);
 
-  SCHEME_EXPAND_OBSERVE_EXIT_BIND(observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_EXIT_BIND(observer);
+  }
 }
 
 static Scheme_Object *
@@ -4086,9 +4106,10 @@ do_letrec_syntaxes(const char *where,
     }
   }
 
-  SCHEME_EXPAND_OBSERVE_LETREC_SYNTAXES_RENAMES(stx_env->observer, bindings, var_bindings, body);
-
-  SCHEME_EXPAND_OBSERVE_PREPARE_ENV(stx_env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_LETREC_SYNTAXES_RENAMES(stx_env->observer, bindings, var_bindings, body);
+    SCHEME_EXPAND_OBSERVE_PREPARE_ENV(stx_env->observer);
+  }
   scheme_prepare_exp_env(stx_env->genv);
   scheme_prepare_compile_env(stx_env->genv->exp_env);
 
@@ -4098,7 +4119,9 @@ do_letrec_syntaxes(const char *where,
     for (v = bindings; SCHEME_STX_PAIRP(v); v = SCHEME_STX_CDR(v)) {
       Scheme_Object *a, *names;
 
-      SCHEME_EXPAND_OBSERVE_NEXT(stx_env->observer);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_NEXT(stx_env->observer);
+      }
 
       a = SCHEME_STX_CAR(v);
       names = SCHEME_STX_CAR(a);
@@ -4114,7 +4137,9 @@ do_letrec_syntaxes(const char *where,
     }
   }
 
-  SCHEME_EXPAND_OBSERVE_NEXT_GROUP(stx_env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_NEXT_GROUP(stx_env->observer);
+  }
 
   if (!env_already && names_to_disappear) {
     /* Need to add renaming for disappeared bindings. If they
@@ -4177,7 +4202,7 @@ do_letrec_syntaxes(const char *where,
         v = scheme_stx_taint_rearm(v, orig_forms);
 
       if (!restore) {
-        SCHEME_EXPAND_OBSERVE_TAG(stx_env->observer,v);
+        SCHEME_EXPAND_OBSERVE_TAG(stx_env->observer,v); /* in "expand" branch */
       }
     }
     var_env->value_name = NULL;
@@ -4201,7 +4226,7 @@ do_letrec_syntaxes(const char *where,
         rec[drec].env_already = 1;
       }
 
-      SCHEME_EXPAND_OBSERVE_PRIM_LETREC_VALUES(stx_env->observer);
+      SCHEME_EXPAND_OBSERVE_PRIM_LETREC_VALUES(stx_env->observer); /* in "expand" branch */
       v = do_let_expand(v, stx_env, rec, drec, "letrec-values", 1, 1, var_env);
       
       if (restore) {
@@ -4213,7 +4238,7 @@ do_letrec_syntaxes(const char *where,
 	v = cons(formname, cons(bindings, v));
 	v = scheme_datum_to_syntax(v, orig_forms, scheme_sys_wraps(origenv), 0, 2);
       } else {
-        SCHEME_EXPAND_OBSERVE_TAG(stx_env->observer,v);
+        SCHEME_EXPAND_OBSERVE_TAG(stx_env->observer,v); /* in "expand" branch */
       }
     }
   }
@@ -4586,7 +4611,9 @@ Scheme_Object *scheme_check_immediate_macro(Scheme_Object *first,
   Scheme_Expand_Info erec1;
   Scheme_Env *menv = NULL;
 
-  SCHEME_EXPAND_OBSERVE_ENTER_CHECK(env->observer, first);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_ENTER_CHECK(env->observer, first);
+  }
 
   while (1) {
     *current_val = NULL;
@@ -4599,7 +4626,9 @@ Scheme_Object *scheme_check_immediate_macro(Scheme_Object *first,
     }
 
     if (!SCHEME_STX_SYMBOLP(name)) {
-      SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+      }
       return first;
     }
 
@@ -4627,7 +4656,9 @@ Scheme_Object *scheme_check_immediate_macro(Scheme_Object *first,
 
       if (!val) {
         first = install_alt_from_rename(first, alt_first);
-        SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+        }
         return first;
       } else if (SAME_TYPE(SCHEME_TYPE(val), scheme_macro_type)) {
         if (scheme_expansion_contexts_include(SCHEME_PTR_VAL(val),
@@ -4661,7 +4692,9 @@ Scheme_Object *scheme_check_immediate_macro(Scheme_Object *first,
         }
       } else {
         first = install_alt_from_rename(first, alt_first);
-        SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_EXIT_CHECK(env->observer, first);
+        }
         return first;
       }
     }
@@ -4775,7 +4808,7 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
   if (rec[drec].comp) {
     scheme_default_compile_rec(rec, drec);
   } else {
-    SCHEME_EXPAND_OBSERVE_VISIT(env->observer,form);
+    SCHEME_EXPAND_OBSERVE_VISIT(env->observer,form); /* in "expand" branch */
   }
 
   if (SAME_TYPE(SCHEME_TYPE(SCHEME_STX_VAL(form)), scheme_expanded_syntax_type)) {
@@ -4832,7 +4865,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
                                     &bind_id, &need_macro_scope,
                                     &inline_variant);
 
-        SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer,find_name);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer,find_name);
+        }
 
 	if (var && SAME_TYPE(SCHEME_TYPE(var), scheme_macro_type)
 	    && scheme_is_rename_transformer(SCHEME_PTR_VAL(var))) {
@@ -4867,10 +4902,12 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
       } else {
 	if (SAME_TYPE(SCHEME_TYPE(var), scheme_syntax_compiler_type)) {
 	  if (var == stop_expander) {
-            SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer,form);
-            SCHEME_EXPAND_OBSERVE_PRIM_STOP(env->observer);
-            SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer,form);
-            SCHEME_EXPAND_OBSERVE_RETURN(env->observer,form);
+            if (!rec[drec].comp) {
+              SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer,form);
+              SCHEME_EXPAND_OBSERVE_PRIM_STOP(env->observer);
+              SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer,form);
+              SCHEME_EXPAND_OBSERVE_RETURN(env->observer,form);
+            }
 	    return form;
           } else {
 	    scheme_wrong_syntax(NULL, NULL, form, "bad syntax");
@@ -4904,14 +4941,14 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 	  else
 	    return var;
 	} else {
-          SCHEME_EXPAND_OBSERVE_VARIABLE(env->observer, form, find_name);
+          SCHEME_EXPAND_OBSERVE_VARIABLE(env->observer, form, find_name); /* in "expand" branch */
           if (bind_id && rec[drec].substitute_bindings)
             find_name = bind_id;
 	  if (protected) {
 	    /* Add a property to indicate that the name is protected */
 	    find_name = scheme_stx_property(find_name, protected_symbol, scheme_true);
 	  }
-          SCHEME_EXPAND_OBSERVE_RETURN(env->observer, find_name);
+          SCHEME_EXPAND_OBSERVE_RETURN(env->observer, find_name); /* in "expand" branch */
 	  return find_name; /* which is usually == form */
 	}
       }
@@ -4960,7 +4997,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
                                     NULL, &need_macro_scope,
                                     NULL);
 
-        SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer, find_name);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer, find_name);
+        }
 	if (var && SAME_TYPE(SCHEME_TYPE(var), scheme_macro_type)
 	    && scheme_is_rename_transformer(SCHEME_PTR_VAL(var))) {
           if (scheme_expansion_contexts_include(SCHEME_PTR_VAL(var),
@@ -5057,7 +5096,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
                                   NULL, &need_macro_scope,
                                   NULL);
 
-      SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer, find_name);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_RESOLVE(env->observer, find_name);
+      }
 
       if (var && SAME_TYPE(SCHEME_TYPE(var), scheme_macro_type)
 	  && scheme_is_rename_transformer(SCHEME_PTR_VAL(var))) {
@@ -5088,10 +5129,12 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 	      || SAME_TYPE(SCHEME_TYPE(var), scheme_syntax_compiler_type))) {
     if (SAME_OBJ(var, stop_expander)) {
       /* Return original: */
-      SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, form);
-      SCHEME_EXPAND_OBSERVE_PRIM_STOP(env->observer);
-      SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer, form);
-      SCHEME_EXPAND_OBSERVE_RETURN(env->observer, form);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, form);
+        SCHEME_EXPAND_OBSERVE_PRIM_STOP(env->observer);
+        SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer, form);
+        SCHEME_EXPAND_OBSERVE_RETURN(env->observer, form);
+      }
       return form;
     } else if (rec[drec].comp && SAME_OBJ(var, normal) && !env->observer) {
       /* Skip creation of intermediate form */
@@ -5112,7 +5155,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
       } else {
         name = scheme_stx_taint_disarm(form, NULL);
         form = scheme_datum_to_syntax(scheme_make_pair(stx, name), form, form, 0, 2);
-        SCHEME_EXPAND_OBSERVE_TAG(env->observer, form);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_TAG(env->observer, form);
+        }
       }
 
       if (SAME_TYPE(SCHEME_TYPE(var), scheme_syntax_compiler_type)) {
@@ -5123,7 +5168,7 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 	} else {
 	  Scheme_Syntax_Expander *f;
 	  f = (Scheme_Syntax_Expander *)SCHEME_SYNTAX_EXP(var);
-	  SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, form);
+	  SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, form); /* in "expand" branch */
 	  form = f(form, env, rec, drec);
 	  SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer, form);
 	  SCHEME_EXPAND_OBSERVE_RETURN(env->observer, form);
@@ -5175,7 +5220,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
     return form; /* We've gone as deep as requested */
   }
 
-  SCHEME_EXPAND_OBSERVE_ENTER_MACRO(env->observer, form);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_ENTER_MACRO(env->observer, form);
+  }
   if (scheme_expansion_contexts_include(SCHEME_PTR_VAL(var),
                                         scheme_frame_to_expansion_context_symbol(env->flags))) {
     form = compile_expand_macro_app(name, menv, var, form, env, rec, drec, need_macro_scope);
@@ -5187,7 +5234,9 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
     }
   } else
     form = adjust_for_other_context(form, var, env);
-  SCHEME_EXPAND_OBSERVE_EXIT_MACRO(env->observer, form);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_EXIT_MACRO(env->observer, form);
+  }
 
   if (rec[drec].comp)
     goto top;
@@ -5197,7 +5246,7 @@ compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
     if (rec[drec].depth)
       goto top;
     else {
-      SCHEME_EXPAND_OBSERVE_RETURN(env->observer, form);
+      SCHEME_EXPAND_OBSERVE_RETURN(env->observer, form); /* in "expand" branch */
       return form;
     }
   }
@@ -5826,7 +5875,9 @@ compile_expand_expr_lift_to_let(Scheme_Object *form, Scheme_Comp_Env *env,
     } else
       o = form;
     form = scheme_add_lifts_as_let(o, l, env, orig_form, rec[drec].comp);
-    SCHEME_EXPAND_OBSERVE_LETLIFT_LOOP(env->observer, form);
+    if (!rec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_LETLIFT_LOOP(env->observer, form);
+    }
     form = compile_expand_expr_lift_to_let(form, env, recs, 1);
     if (rec[drec].comp)
       scheme_merge_compile_recs(rec, drec, recs, 2);
@@ -5927,11 +5978,15 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 
   old = forms;
   forms = add_scope_at_arbitrary_phase(forms, rib);
-  SCHEME_EXPAND_OBSERVE_BLOCK_RENAMES(env->observer, forms, old);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_BLOCK_RENAMES(env->observer, forms, old);
+  }
 
  try_again:
 
-  SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+  }
 
   if (!SCHEME_STX_PAIRP(forms)) {
     scheme_wrong_syntax(scheme_begin_stx_string, NULL, beginify(env, forms), "bad syntax");
@@ -5961,7 +6016,9 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
       /* Inline content */
       Scheme_Object *orig_forms = forms;
 
-      SCHEME_EXPAND_OBSERVE_PRIM_BEGIN(env->observer);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_PRIM_BEGIN(env->observer);
+      }
 
       /* FIXME: Redundant with check done by scheme_flatten_begin below? */
       if (scheme_stx_proper_list_length(first) < 0)
@@ -5981,7 +6038,9 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 
       forms = scheme_flatten_begin(first, forms);
 
-      SCHEME_EXPAND_OBSERVE_SPLICE(env->observer, forms);
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_SPLICE(env->observer, forms);
+      }
 
       if (SCHEME_STX_NULLP(forms)) {
         if (!SCHEME_PAIRP(pre_exprs)) {
@@ -6047,10 +6106,12 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 	
 	v = SCHEME_STX_CDR(first);
 
-        if (is_val) {
-          SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_VALUES(env->observer);
-        } else {
-          SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_SYNTAXES(env->observer);
+        if (!rec[drec].comp) {
+          if (is_val) {
+            SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_VALUES(env->observer);
+          } else {
+            SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_SYNTAXES(env->observer);
+          }
         }
 	
 	if (!SCHEME_STX_PAIRP(v))
@@ -6080,7 +6141,9 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 	var = SCHEME_STX_CAR(first);
 	v = scheme_stx_track(v, first, var);
 
-        SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer,v);
+        if (!rec[drec].comp) {
+          SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer,v);
+        }
 
 	link = scheme_make_pair(v, scheme_null);
 	if (is_val) {
@@ -6146,7 +6209,9 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 
 	  if (!is_val) {
 	    /* Evaluate and bind syntaxes */
-            SCHEME_EXPAND_OBSERVE_PREPARE_ENV(env->observer);
+            if (!rec[drec].comp) {
+              SCHEME_EXPAND_OBSERVE_PREPARE_ENV(env->observer);
+            }
 	    scheme_prepare_exp_env(new_env->genv);
             scheme_prepare_compile_env(new_env->genv->exp_env);
 	    pos = 0;
@@ -6169,7 +6234,9 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 	if (!SCHEME_STX_NULLP(result)) {
 	  first = SCHEME_STX_CAR(result);
 	  first = scheme_datum_to_syntax(first, forms, forms, 0, 0);
-          SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+          if (!rec[drec].comp) {
+            SCHEME_EXPAND_OBSERVE_NEXT(env->observer);
+          }
           is_last = SCHEME_STX_NULLP(SCHEME_STX_CDR(result));
           if (is_last)
             env->value_name = orig_vname;
@@ -6182,9 +6249,13 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 	    if (SAME_OBJ(gval, scheme_begin_syntax)) {
 	      /* Inline content */
 	      result = SCHEME_STX_CDR(result);
-              SCHEME_EXPAND_OBSERVE_PRIM_BEGIN(env->observer);
+              if (!rec[drec].comp) {
+                SCHEME_EXPAND_OBSERVE_PRIM_BEGIN(env->observer);
+              }
 	      result = scheme_flatten_begin(first, result);
-	      SCHEME_EXPAND_OBSERVE_SPLICE(env->observer,result);
+              if (!rec[drec].comp) {
+                SCHEME_EXPAND_OBSERVE_SPLICE(env->observer,result);
+              }
               goto define_try_again;
 	    } else if (mixed) {
               /* accumulate expr for either sequence after definitions
@@ -6263,8 +6334,10 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
         if (rec[drec].depth > 0)
           --rec[drec].depth;
 	if (rec[drec].depth) {
-          SCHEME_EXPAND_OBSERVE_BLOCK_TO_LETREC(env->observer,
-                                                scheme_make_pair(result, scheme_null));
+          if (!rec[drec].comp) {
+            SCHEME_EXPAND_OBSERVE_BLOCK_TO_LETREC(env->observer,
+                                                  scheme_make_pair(result, scheme_null));
+          }
           env = scheme_no_defines(env);
           env->value_name = orig_vname;
           result = scheme_expand_expr(result, env, rec, drec);
@@ -6330,7 +6403,7 @@ compile_expand_block(Scheme_Object *forms, Scheme_Comp_Env *env,
 
     env->value_name = orig_vname;
     
-    SCHEME_EXPAND_OBSERVE_BLOCK_TO_LIST(env->observer, forms);
+    SCHEME_EXPAND_OBSERVE_BLOCK_TO_LIST(env->observer, forms); /* in "expand" branch */
     forms = expand_list(forms, env, recs, 0);
     return forms;
   }
diff --git a/racket/src/racket/src/module.c b/racket/src/racket/src/module.c
index 4cf6cedf0a..ccb262cab2 100644
--- a/racket/src/racket/src/module.c
+++ b/racket/src/racket/src/module.c
@@ -7205,7 +7205,9 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
     m->super_bxs_info = super_bxs_info;
   }
 
-  SCHEME_EXPAND_OBSERVE_PREPARE_ENV(env->observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_PREPARE_ENV(env->observer);
+  }
 
   /* load the module for the initial require */
   if (iidx) {
@@ -7308,8 +7310,10 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
 
   fm = scheme_datum_to_syntax(fm, form, mb_ctx, 0, 2);
 
-  if (check_mb) {
-    SCHEME_EXPAND_OBSERVE_TAG(env->observer, fm);
+  if (!rec[drec].comp) {
+    if (check_mb) {
+      SCHEME_EXPAND_OBSERVE_TAG(env->observer, fm);
+    }
   }
 
   fm = scheme_stx_property(fm, module_name_symbol, scheme_resolved_module_path_value(rmp));
@@ -7322,7 +7326,9 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
 
   fm = scheme_stx_add_module_frame_context(fm, rn_set);
 
-  SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer, fm);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer, fm);
+  }
 
   if (!check_mb) {
     fm = scheme_check_immediate_macro(fm, benv, rec, drec, &mbval, 1);
@@ -7334,8 +7340,10 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
       fm = scheme_make_pair(mb, scheme_make_pair(fm, scheme_null));
       fm = scheme_datum_to_syntax(fm, form, mb_ctx, 0, 2);
       fm = scheme_stx_property(fm, module_name_symbol, scheme_resolved_module_path_value(rmp));
-      
-      SCHEME_EXPAND_OBSERVE_TAG(env->observer, fm);
+
+      if (!rec[drec].comp) {
+        SCHEME_EXPAND_OBSERVE_TAG(env->observer, fm);
+      }
 
       check_mb = 1;
     }
@@ -7452,7 +7460,9 @@ static Scheme_Object *do_module(Scheme_Object *form, Scheme_Comp_Env *env,
 
   LOG_END_EXPAND(m);
 
-  SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer, fm);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_RENAME_ONE(env->observer, fm);
+  }
   return fm;
 }
 
@@ -8182,7 +8192,9 @@ static Scheme_Object *do_module_begin(Scheme_Object *orig_form, Scheme_Comp_Env
   form = introduce_to_module_context(form, rn_set);
 
   observer = env->observer;
-  SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, form);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, form);
+  }
 
   _num_phases = MALLOC_ONE_ATOMIC(int);
   *_num_phases = 0;
@@ -8434,7 +8446,9 @@ static Scheme_Object *do_module_begin(Scheme_Object *orig_form, Scheme_Comp_Env
     env->genv->module->dummy = dummy;
   }
 
-  SCHEME_EXPAND_OBSERVE_NEXT(observer);
+  if (!rec[drec].comp) {
+    SCHEME_EXPAND_OBSERVE_NEXT(observer);
+  }
 
   /* Submodules */
   if (has_submodules) {
@@ -8582,11 +8596,13 @@ static Scheme_Object *handle_submodule_form(const char *who,
 
   e = revert_use_site_scopes_via_context(e, rn_set, phase);
 
-  SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
-  if (is_star) {
-    SCHEME_EXPAND_OBSERVE_PRIM_SUBMODULE_STAR(observer);
-  } else {
-    SCHEME_EXPAND_OBSERVE_PRIM_SUBMODULE(observer);
+  if (erec) {
+    SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+    if (is_star) {
+      SCHEME_EXPAND_OBSERVE_PRIM_SUBMODULE_STAR(observer);
+    } else {
+      SCHEME_EXPAND_OBSERVE_PRIM_SUBMODULE(observer);
+    }
   }
 
   if (SCHEME_STX_PAIRP(e)) {
@@ -8632,7 +8648,9 @@ static Scheme_Object *handle_submodule_form(const char *who,
     *_kind = MODULE_MODFORM_KIND;
   }
 
-  SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer,e);
+  if (erec) {
+    SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer,e);
+  }
 
   return e;
 }
@@ -8838,7 +8856,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
     while (1) {
       Scheme_Object *fst;
 
-      SCHEME_EXPAND_OBSERVE_NEXT(observer);
+      if (erec) {
+        SCHEME_EXPAND_OBSERVE_NEXT(observer);
+      }
 
       e = SCHEME_STX_CAR(fm);
 
@@ -8882,9 +8902,13 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
         e = introduce_to_module_context(e, rn_set);
         fm = scheme_named_map_1(NULL, introduce_to_module_context, fm, rn_set);
         fm = scheme_make_pair(e, fm);
-        SCHEME_EXPAND_OBSERVE_RENAME_LIST(observer, fm);
+        if (erec) {
+          SCHEME_EXPAND_OBSERVE_RENAME_LIST(observer, fm);
+        }
 	fm = scheme_append(fst, fm);
-        SCHEME_EXPAND_OBSERVE_MODULE_LIFT_LOOP(observer, fst);
+        if (erec) {
+          SCHEME_EXPAND_OBSERVE_MODULE_LIFT_LOOP(observer, fst);
+        }
       } else {
 	/* No definition lifts added... */
 	if (SCHEME_STX_PAIRP(e))
@@ -8895,9 +8919,13 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	if (fst && SCHEME_STX_SYMBOLP(fst) && scheme_stx_free_eq_x(scheme_begin_stx, fst, phase)) {
 	  fm = SCHEME_STX_CDR(fm);
 	  e = introduce_to_module_context(e, rn_set);
-          SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, e);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, e);
+          }
 	  fm = scheme_flatten_begin(e, fm);
-	  SCHEME_EXPAND_OBSERVE_SPLICE(observer, fm);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_SPLICE(observer, fm);
+          }
 	  if (SCHEME_STX_NULLP(fm)) {
             e = scheme_frame_get_provide_lifts(xenv);
             e = scheme_reverse(e);
@@ -8911,7 +8939,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
               fm = e;
             if (SCHEME_NULLP(fm) && expand_ends)
               fm = get_higher_phase_lifts(bxs, begin_for_syntax_stx);
-            SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, fm);
+            if (erec) {
+              SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, fm);
+            }
             if (SCHEME_NULLP(fm)) {
               e = NULL;
               break;
@@ -8925,7 +8955,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 
     e = introduce_to_module_context(e, rn_set);
 
-    SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, e);
+    if (erec) {
+      SCHEME_EXPAND_OBSERVE_RENAME_ONE(observer, e);
+    }
 
     if (SCHEME_STX_PAIRP(e)) {
       Scheme_Object *fst;
@@ -8938,8 +8970,10 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	  Scheme_Object *vars, *val;
           int var_count = 0;
 
-          SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
-          SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_VALUES(observer);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+            SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_VALUES(observer);
+          }
 
 	  /* Create top-level vars; uses revert_use_site_scopes() on the vars */
 	  scheme_define_parse(e, &vars, &val, 0, xenv, 1);
@@ -8995,7 +9029,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
                                        e, e, 0, 2);
           }
           
-          SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          }
 	  kind = DEFN_MODFORM_KIND;
         } else if (scheme_stx_free_eq_x(scheme_define_syntaxes_stx, fst, phase)
                    || scheme_stx_free_eq_x(scheme_begin_for_syntax_stx, fst, phase)) {
@@ -9013,15 +9049,21 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 
 	  for_stx = scheme_stx_free_eq_x(scheme_begin_for_syntax_stx, fst, phase);
 
-          SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+          }
 
           if (for_stx) {
-            SCHEME_EXPAND_OBSERVE_PRIM_BEGIN_FOR_SYNTAX(observer);
+            if (erec) {
+              SCHEME_EXPAND_OBSERVE_PRIM_BEGIN_FOR_SYNTAX(observer);
+            }
             if (scheme_stx_proper_list_length(e) < 0)
               scheme_wrong_syntax(NULL, NULL, e, NULL);
             code = e;
           } else {
-            SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_SYNTAXES(observer);
+            if (erec) {
+              SCHEME_EXPAND_OBSERVE_PRIM_DEFINE_SYNTAXES(observer);
+            }
             scheme_define_parse(e, &names, &code, 1, env, 1);
           }
 
@@ -9030,7 +9072,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
           else
             boundname = scheme_false;
 
-          SCHEME_EXPAND_OBSERVE_PREPARE_ENV(observer);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_PREPARE_ENV(observer);
+          }
 
 	  scheme_prepare_exp_env(env->genv);
 	  scheme_prepare_compile_env(env->genv->exp_env);
@@ -9040,6 +9084,7 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	  eenv = scheme_new_comp_env(env->genv->exp_env, env->insp,
                                      frame_scopes,
                                      SCHEME_KEEP_SCOPES_FRAME);
+          eenv->observer = observer;
           if (!for_stx)
             scheme_frame_captures_lifts(eenv, NULL, NULL, scheme_false, scheme_false, 
                                         req_data, scheme_false, scheme_false);
@@ -9213,7 +9258,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	  } else
             e = NULL;
           
-          SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          }
 
           kind = DONE_MODFORM_KIND;
 
@@ -9222,8 +9269,10 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
             non_phaseless_form = e;
 	} else if (scheme_stx_free_eq_x(require_stx, fst, phase)) {
 	  /************ require *************/
-          SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
-          SCHEME_EXPAND_OBSERVE_PRIM_REQUIRE(observer);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+            SCHEME_EXPAND_OBSERVE_PRIM_REQUIRE(observer);
+          }
 
           e = revert_use_site_scopes_via_context(e, rn_set, phase);
 
@@ -9241,7 +9290,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	  if (!erec)
 	    e = NULL;
 
-          SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          if (erec) {
+            SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+          }
 	  kind = DONE_MODFORM_KIND;
 	} else if (scheme_stx_free_eq_x(provide_stx, fst, phase)) {
 	  /************ provide *************/
@@ -9334,7 +9385,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
           fm = get_higher_phase_lifts(bxs, begin_for_syntax_stx);
       } else
         fm = e;
-      SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, fm);
+      if (erec) {
+        SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, fm);
+      }
     }
   }
   /* first =  a list of (cons semi-expanded-expression kind) */
@@ -9351,7 +9404,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
   }
 
   /* Pass 2 */
-  SCHEME_EXPAND_OBSERVE_NEXT_GROUP(observer);
+  if (erec) {
+    SCHEME_EXPAND_OBSERVE_NEXT_GROUP(observer);
+  }
   
   {
     /* Module and each `begin-for-syntax' group manages its own prefix: */
@@ -9379,7 +9434,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
     kind = SCHEME_INT_VAL(SCHEME_CDR(e));
     e = SCHEME_CAR(e);
     
-    SCHEME_EXPAND_OBSERVE_NEXT(observer);
+    if (erec) {
+      SCHEME_EXPAND_OBSERVE_NEXT(observer);
+    }
 
     if (kind == SAVED_MODFORM_KIND) {
       expanded_l = scheme_make_pair(SCHEME_CDR(e), expanded_l);
@@ -9453,7 +9510,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 	/* Lifts - insert them and try again */
         Scheme_Object *fst;
         *bxs->all_simple_bindings = 0;
-        SCHEME_EXPAND_OBSERVE_MODULE_LIFT_LOOP(observer, scheme_copy_list(l));
+        if (erec) {
+          SCHEME_EXPAND_OBSERVE_MODULE_LIFT_LOOP(observer, scheme_copy_list(l));
+        }
         if (erec) {
           e = scheme_make_pair(scheme_make_pair(e, SCHEME_CAR(expanded_l)),
                                scheme_make_integer(SAVED_MODFORM_KIND)); /* kept both expanded & maybe compiled */
@@ -9519,7 +9578,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
         p = e;
         expr_cnt = 0;
       }
-      SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, p);
+      if (erec) {
+        SCHEME_EXPAND_OBSERVE_MODULE_LIFT_END_LOOP(observer, p);
+      }
       for (ll = p; SCHEME_PAIRP(ll); ll = SCHEME_CDR(ll)) {
         e = SCHEME_CAR(ll);
         if (expr_cnt <= 0) {
@@ -9558,7 +9619,9 @@ static Scheme_Object *do_module_begin_at_phase(Scheme_Object *form, Scheme_Comp_
 
   /* Pass 3 */
   /* if at phase 0, expand provides for all phases */
-  SCHEME_EXPAND_OBSERVE_NEXT_GROUP(observer);
+  if (erec) {
+    SCHEME_EXPAND_OBSERVE_NEXT_GROUP(observer);
+  }
   
   if (phase == 0) {
     Scheme_Object *expanded_provides;
@@ -9660,9 +9723,11 @@ static Scheme_Object *expand_all_provides(Scheme_Object *form,
     
     /* Expand and add provides to table: */
     
-    SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
-    SCHEME_EXPAND_OBSERVE_PRIM_PROVIDE(observer);
-      
+    if (!rec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_ENTER_PRIM(observer, e);
+      SCHEME_EXPAND_OBSERVE_PRIM_PROVIDE(observer);
+    }
+
     ex = e;
 
     if (provide_phase != 0) {
@@ -9692,7 +9757,9 @@ static Scheme_Object *expand_all_provides(Scheme_Object *form,
     if (keep_expanded)
       expanded_provides = scheme_make_pair(ex, expanded_provides);
     
-    SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+    if (!rec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_EXIT_PRIM(observer, e);
+    }
     
     saved_provides = SCHEME_CDR(saved_provides);
   }
@@ -9720,10 +9787,14 @@ static Scheme_Object *expand_submodules(Scheme_Compile_Expand_Info *rec, int dre
 
   while (!SCHEME_NULLP(l)) {
     mod = SCHEME_CAR(l);
-    SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, SCHEME_CAR(mod));
+    if (!rec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_ENTER_PRIM(env->observer, SCHEME_CAR(mod));
+    }
     mod = do_module(SCHEME_CAR(mod), env, rec, drec, ancestry, env->genv->module->submodule_path, post,
                     bxs, SCHEME_CDR(mod));
-    SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer,mod);
+    if (!rec[drec].comp) {
+      SCHEME_EXPAND_OBSERVE_EXIT_PRIM(env->observer,mod);
+    }
 
     mods = scheme_make_pair(mod, mods);