> I'm guessing you mean expand and not evaluate? When I hit "C-c C-c" on both > of the blocks in your example, they are evaluated just fine.
I think the issue arises if you evaluate the second block *without* having already evaluated the first block. In that case, an error is signalled: let: Symbol’s function definition is void: goo Upon removing the COMMENT from the headline and repeating, it works. Of course, if you evaluate the first block first, it works fine in either scenario. So it seems, as Grant pointed out, the noweb reference is not being resolved when the surrounding headline is commented. I don't know the answer to whether this is intended or not, but at least I can say that I get the same behaviour. -- *Paul*
