this is in reference to this issue here
I am able to perfectly recreate the described issue
If you start with a wallet that is pre 0.8
Replace the bitcoind in /daemon directory with any .8.0+ bitcoind
execute walletpassphrase command this will instantly crash bitcoind
Also there is adverse affects when creating a new btc address when using the getnewaddress method. The newly created address/accounts will not be added to the wallet. and any preceding call will fail. getinfo() etc...
To fix this issue which is a NON issue simply download the desired bitcoind and simply execute it with the command one time
bitcoind.exe -upgradewallet
This simple error which is not technically an error cost me a great deal of time energy and effort.
The issue 916 is reproducible by running bitcoind with an out of date wallet pre 0.8 since this issue was closed i had to create this post here. Hopefully this will allow the developers to recreate the problem which they could not create before.