running `texi2dvi -o test2.dvi test.texi' fails to create the test2.dvi 

Thanks for the report.  I think I've fixed this in another way.
Can you try the texi2dvi that's currently in Texinfo CVS, please?
http://cvs.savannah.gnu.org/viewvc/*checkout*/texinfo/util/texi2dvi?root=texinfo

Best,
Karl


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