diff --git a/collects/mzlib/compile.ss b/collects/mzlib/compile.ss
index 45e24bab81..db8ecc77c1 100644
--- a/collects/mzlib/compile.ss
+++ b/collects/mzlib/compile.ss
@@ -1,57 +1,63 @@
+#lang scheme/base
+(require scheme/function
+         scheme/path
+         scheme/file)
+(provide compile-file)
 
-(module compile mzscheme
-  (require "file.ss" 
-	   "port.ss")
-  (provide compile-file)
-  
-  ;; (require compiler/src2src)
-
-  (define compile-file
-    (case-lambda
-     [(src)
-      (let-values ([(base name dir?) (split-path src)])
-	(let ([cdir (build-path
-		     (if (symbol? base)
-			 'same
-			 base)
-		     "compiled")])
-	  (unless (directory-exists? cdir)
-	    (make-directory cdir))
-	  (compile-file src (build-path cdir (path-add-suffix name #".zo")))))]
-     [(src dest) (compile-file src dest values)]
-     [(src dest filter)
-      (let ([in (open-input-file src)])
-	(dynamic-wind
-	 void
-	 (lambda ()
-	   (port-count-lines! in)
-	   (with-handlers ([void
-			    (lambda (exn)
-			      (with-handlers ([void void])
-				(delete-file dest))
-			      (raise exn))])
-	     (let ([out (open-output-file dest 'truncate/replace)]
-		   [ok? #f])
-	       (let ([dir (let-values ([(base name dir?) (split-path src)])
-			    (if (eq? base 'relative)
-				(current-directory)
-				(path->complete-path base (current-directory))))])
-		 (parameterize ([current-load-relative-directory dir]
-				[current-write-relative-directory dir])
-		   (dynamic-wind
-		       void
-		       (lambda ()
-			 (let loop ()
-			   (let ([r (read-syntax src in)])
-			     (unless (eof-object? r)
-			       (write (compile-syntax (filter (namespace-syntax-introduce r))) out)
-			       (loop))))
-			 (set! ok? #t))
-		       (lambda () 
-			 (close-output-port out)
-			 (unless ok?
-			   (with-handlers ([void void])
-			     (delete-file dest))))))))))
-	 (lambda () (close-input-port in))))
-      dest])))
+(define compile-file
+  (case-lambda
+    [(src)
+     (define cdir (build-path (path-only src) "compiled"))
+     (make-directory* cdir)
+     (compile-file src (build-path cdir (path-add-suffix (file-name-from-path src) #".zo")))]
+    [(src dest) 
+     (compile-file src dest values)]
+    [(src dest filter)
+     (define in (open-input-file src))
+     (dynamic-wind
+      void
+      (lambda ()
+        (define ok? #f)
+        ; This must be based on the path to dest. Renaming typically cannot be done
+        ; atomically across file systems, so the temporary directory is not an option
+        ; because it is often a ram disk. src (or dir below) couldn't be used because
+        ; it may be on a different filesystem. Since dest must be a file path, this
+        ; guarantees that the temp file is in the same directory. It would take a weird
+        ; filesystem configuration to break that.
+        (define temp-filename (make-temporary-file "tmp~a" #f (path-only dest)))
+        (port-count-lines! in)
+        (dynamic-wind
+         void
+         (lambda ()
+           ; XXX: This seems like it should be a library function named 'relative-path-only'
+           (define dir
+             (let-values ([(base name dir?) (split-path src)])
+               (if (eq? base 'relative)
+                   (current-directory)
+                   (path->complete-path base (current-directory)))))
+           (define out (open-output-file temp-filename #:exists 'truncate/replace))
+           (parameterize ([current-load-relative-directory dir]
+                          [current-write-relative-directory dir])
+             ; Rather than installing a continuation barrier, we detect reinvocation.
+             ; The only thing that can cause reinvocation is if the filter captures the
+             ; continuation and communicates it externally.
+             (define count 0)
+             (dynamic-wind
+              (lambda ()
+                (if (zero? count)
+                    (set! count 1)
+                    (error 'compile-file "filter function should not be re-entrant")))
+              (lambda ()
+                (for ([r (in-port (curry read-syntax src) in)])
+                  (write (compile-syntax (filter (namespace-syntax-introduce r))) out))
+                (set! ok? #t))
+              (lambda () 
+                (close-output-port out)))))
+         (lambda ()
+           (if ok?
+               (rename-file-or-directory temp-filename dest)
+               (with-handlers ([exn:fail:filesystem? void])
+                 (delete-file temp-filename))))))
+      (lambda () (close-input-port in)))
+     dest]))