Index: cfe/trunk/lib/Parse/ParseStmtAsm.cpp
===================================================================
--- cfe/trunk/lib/Parse/ParseStmtAsm.cpp
+++ cfe/trunk/lib/Parse/ParseStmtAsm.cpp
@@ -323,7 +323,7 @@
   SmallVector<Token, 4> AsmToks;
 
   unsigned BraceNesting = 0;
-  unsigned short savedBraceCount = 0;
+  unsigned short savedBraceCount = BraceCount;
   bool InAsmComment = false;
   FileID FID;
   unsigned LineNo = 0;
@@ -334,7 +334,6 @@
   if (Tok.is(tok::l_brace)) {
     // Braced inline asm: consume the opening brace.
     BraceNesting = 1;
-    savedBraceCount = BraceCount;
     EndLoc = ConsumeBrace();
     LBraceLocs.push_back(EndLoc);
     ++NumTokensRead;
Index: cfe/trunk/test/Parser/ms-inline-asm.c
===================================================================
--- cfe/trunk/test/Parser/ms-inline-asm.c
+++ cfe/trunk/test/Parser/ms-inline-asm.c
@@ -45,6 +45,9 @@
     }
   }
 }
+void t11() {
+  do { __asm mov eax, 0 __asm { __asm mov edx, 1 } } while(0);
+}
 int t_fail() { // expected-note {{to match this}}
   __asm 
   __asm { // expected-error 3 {{expected}} expected-note {{to match this}}