[Xy-pic] xy-pic conflicts with Babel?

[Aivo Jürgenson]

Hello,

It seems that I have found the conflict between xypic and babel packages. 
The following file

\documentclass{article}
\usepackage[all]{xy}
\usepackage[estonian]{babel}

\begin{document}

\xy
\xygraph{
 	!{<0cm,0cm>;<2cm,0cm>:<0cm,0cm>}
 	*++[F.] {\txt{Avada seif\\X EEK}}="A1"
}
\endxy

\end{document}

produces the following error message:

aivo at jitsu:~/kool/magister/tekst/joonis/seif$ pdflatex test-minimal.tex
This is pdfeTeX, Version 3.141592-1.21a-2.2 (Web2C 7.5.4)
entering extended mode
(./test-minimal.tex
LaTeX2e <2003/12/01>
Babel <v3.8d> and hyphenation patterns for american, estonian, 
nohyphenation, l
oaded.
(/usr/share/texmf-tetex/tex/latex/base/article.cls
Document Class: article 2004/02/16 v1.4f Standard LaTeX document class
(/usr/share/texmf-tetex/tex/latex/base/size10.clo))
(/usr/share/texmf-tetex/tex/generic/xypic/xy.sty
(/usr/share/texmf-tetex/tex/generic/xypic/xy.tex Bootstrap'ing: catcodes,
docmode, (/usr/share/texmf-tetex/tex/generic/xypic/xyrecat.tex)
(/usr/share/texmf-tetex/tex/generic/xypic/xyidioms.tex)

  Xy-pic version 3.7 <1999/02/16>
  Copyright (c) 1991-1998 by Kristoffer H. Rose <krisrose at ens-lyon.fr>
  Xy-pic is free software: see the User's Guide for details.

Loading kernel: messages; fonts; allocations: state, direction,
utility macros; pictures: \xy, positions, objects, decorations;
kernel objects: directionals, circles, text; options; algorithms: 
directions,
edges, connections;  Xy-pic loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xyall.tex
  Xy-pic option: All features v.3.3
(/usr/share/texmf-tetex/tex/generic/xypic/xycurve.tex
  Xy-pic option: Curve and Spline extension v.3.7 curve, circles, loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xyframe.tex
  Xy-pic option: Frame and Bracket extension v.3.7 loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xycmtip.tex
  Xy-pic option: Computer Modern tip extension v.3.3
(/usr/share/texmf-tetex/tex/generic/xypic/xytips.tex
  Xy-pic option: More Tips extension v.3.3 loaded) loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xyline.tex
  Xy-pic option: Line styles extension v.3.6 loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xyrotate.tex
  Xy-pic option: Rotate and Scale extension v.3.3 loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xycolor.tex
  Xy-pic option: Colour extension v.3.3 loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xymatrix.tex
  Xy-pic option: Matrix feature v.3.4 loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xyarrow.tex
  Xy-pic option: Arrow and Path feature v.3.5 path, \ar, loaded)
(/usr/share/texmf-tetex/tex/generic/xypic/xygraph.tex
  Xy-pic option: Graph feature v.3.7 loaded) loaded))
(/usr/share/texmf-tetex/tex/generic/babel/babel.sty
(/usr/share/texmf-tetex/tex/generic/babel/estonian.ldf
(/usr/share/texmf-tetex/tex/generic/babel/babel.def))) 
(./test-minimal.aux)
! Use of \next@ doesn't match its definition.
<argument> ...*++[F.] {\txt {Avada seif\\X EEK}}="
                                                   A1"
l.11 }

When I uncomment the \usepackage[estonian]{babel} line, the file works 
fine and produces correct PDF output.

Could you give me some pointers, what other things to check for and where 
else to report this problem, is this is indeed a bug, not my misusage. So 
far I haven't found anything about this error message or conflicts from 
Google.

Aivo Jürgenson, kala at linux.ee