)
   (print c))

But, if I embed it into a function:
(defun foo ()
(iter:iter
   (iter:for c :matrix-row grid::*array-3-4-double-float*)
   (print c)))

it will evaluate OK in slime (C-x C-e), but will not compile (C-c C-c). The returned error is:
>>>

post-processing/xpdp-post-processing.lisp:75:3:
error:
    Objects of type FUNCTION can't be dumped into fasl files.
    --> LET* BLOCK TAGBODY PROGN SETQ THE FUNCALL SB-C::%FUNCALL THE
    --> SB-KERNEL:%COERCE-CALLABLE-TO-FUN
    ==>
      #<FUNCTION (LAMBDA #) {1002DD7AD9}>

note:
    The first argument never returns a value.
    --> LET* BLOCK TAGBODY PROGN SETQ THE FUNCALL SB-C::%FUNCALL THE
    ==>
      (SB-KERNEL:%COERCE-CALLABLE-TO-FUN #<FUNCTION # {1002DD7AD9}>)

... more stuff
>>>

So, it seems that sbcl can digest it, but for some reason cannot write it to a fasl.

The macroexpansion of the code above is:
(LET* ((#:SEQUENCE120 NIL) (#:LIMIT121 NIL) (C NIL) (#:INDEX119 NIL))
(BLOCK NIL
    (TAGBODY
       (PROGN
    (SETQ #:SEQUENCE120 GRID::*ARRAY-3-4-DOUBLE-FLOAT*)
    (SETQ #:LIMIT121 (FUNCALL # #:SEQUENCE120))
    (SETQ #:INDEX119 -1))
     LOOP-TOP-NIL
       (PROGN
    (SETQ #:INDEX119 (+ #:INDEX119 1))
    (IF (>= #:INDEX119 #:LIMIT121)
         (GO LOOP-END-NIL))
    (SETQ C (FUNCALL # #:SEQUENCE120 #:INDEX119))
    (PRINT C))
       (PROGN)
       (GO LOOP-TOP-NIL)
     LOOP-END-NIL
       (PROGN))
    NIL))

Is this issue due to a malformed extension of iterate, or some misalignment between iterate and sbcl?

Thank you,

Mirko