Ripped from Fedora which took this from upstream

* Tue Nov 22 2005 Tim Waugh <twaugh@redhat.com>  3.0-37
- Applied patch from upstream to fix parsing problem (bug #146638).

http://bugzilla.redhat.com/bugzilla/show_bug.cgi?id=146638

--- bash-3.0/parse.y.subshell	2005-11-22 13:19:11.000000000 +0000
+++ bash-3.0/parse.y	2005-11-22 13:19:24.000000000 +0000
@@ -2055,14 +2055,6 @@
   if (uc)
     shell_input_line_index++;
 
-  if MBTEST(uc == '\\' && remove_quoted_newline && shell_input_line[shell_input_line_index] == '\n')
-    {
-	if (SHOULD_PROMPT ())
-	  prompt_again ();
-	line_number++;
-	goto restart_read;
-    }
-
 #if defined (ALIAS) || defined (DPAREN_ARITHMETIC)
   /* If UC is NULL, we have reached the end of the current input string.  If
      pushed_string_list is non-empty, it's time to pop to the previous string
@@ -2078,6 +2070,14 @@
     }
 #endif /* ALIAS || DPAREN_ARITHMETIC */
 
+  if MBTEST(uc == '\\' && remove_quoted_newline && shell_input_line[shell_input_line_index] == '\n')
+    {
+	if (SHOULD_PROMPT ())
+	  prompt_again ();
+	line_number++;
+	goto restart_read;
+    }
+
   if (!uc && shell_input_line_terminator == EOF)
     return ((shell_input_line_index != 0) ? '\n' : EOF);