Twenex GRIND - lose lose

[KRAMER at MIT-MC (Scott J. Kramer)]

The GRIND function on Twenex is losing badly, the following output
was produced on XX:

This was the file prior to running GRIND (mashed intentionally to demo bug):

 (defun y-n ()    (clear-input tyi)  (princ '|(Y or N)? |)
     ((lambda (char) (cond
	    ((or (= char 89.) (= char 121.))
                    (princ '|es| tyo))
                 ((or (= char 78.) (= char 110.))
         (princ '/o tyo)
                  nil)           (t (y-n))))
   (tyi)))

This was the resulting output:

(DEFUN Y-N NIL       (CLEAR-INPUT TYI)      (PRINC '|(Y or N)? |)      ((
LAMBDA (CHAR) (COND ((OR (= CHAR 89.) (= CHAR 121.)) (PRINC '|es| TYO))((OR (
= CHAR 78.) (= CHAR 110.)) (PRINC '/o TYO) NIL)(T (Y-N))))(TYI))) 

I think the bug is in GRINDEF, but I am not sure where to look as I am not
familiar with the workings of that program.  Running GRINDEF on the function
within Lisp works fine.
				Scott