diff -ruN binutils-2.17-orig/gas/config/tc-avr.h binutils-2.17/gas/config/tc-avr.h
--- gas/config/tc-avr.h	2008-01-24 14:41:48.000000000 -0800
+++ gas/config/tc-avr.h	2008-01-24 14:43:07.000000000 -0800
@@ -109,8 +109,12 @@
    would print `12 34 56 78'.  The default value is 4.  */
 #define LISTING_WORD_SIZE 2
 
-/* AVR port uses `$' as a logical line separator */
-#define LEX_DOLLAR 0
+/* AVR port uses `$' as a logical line separator and doesn't 
+   allow it in symbols. We allow it in the middle of symbols. 
+   We also hack get_symbol_end to disallow it at the end of a symbol. */
+#define LEX_DOLLAR 1
+#define TC_EOL_IN_INSN(PTR)	(*(PTR) == '$' && is_part_of_name((PTR)[-1]) && is_part_of_name((PTR)[1]))
+#define TC_FORBID_DOLLAR_AT_END
 
 /* An `.lcomm' directive with no explicit alignment parameter will
    use this macro to set P2VAR to the alignment that a request for
diff -ruN binutils-2.17-orig/gas/config/tc-msp430.h binutils-2.17/gas/config/tc-msp430.h
--- gas/config/tc-msp430.h	2008-01-24 14:41:48.000000000 -0800
+++ gas/config/tc-msp430.h	2008-01-24 14:44:27.000000000 -0800
@@ -97,7 +97,7 @@
      example, a value of 2 might print `1234 5678' where a value of 1
      would print `12 34 56 78'.  The default value is 4.  */
 
-#define LEX_DOLLAR 0
+#undef LEX_DOLLAR
 /* MSP430 port does not use `$' as a logical line separator */
 
 #define TC_IMPLICIT_LCOMM_ALIGNMENT(SIZE, P2VAR) (P2VAR) = 0
diff -ruN binutils-2.17-orig/gas/expr.c binutils-2.17/gas/expr.c
--- gas/expr.c	2008-01-24 14:41:48.000000000 -0800
+++ gas/expr.c	2008-01-24 14:45:37.000000000 -0800
@@ -2174,6 +2174,15 @@
 	;
       if (is_name_ender (c))
 	c = *input_line_pointer++;
+#ifdef TC_FORBID_DOLLAR_AT_END
+      /* This is for the Atmel AVR platforms. We want to allow $ in symbols
+	 but also as a line separator. Yucky. */
+       if (input_line_pointer[-2] == '$')
+	{
+	  input_line_pointer--;
+	  c = '$';
+	}
+#endif
     }
   *--input_line_pointer = 0;
   return (c);