This program:

public class Tmp
{
    class S{}

    interface I<S, T extends S>{}

    class C implements I<C,C>{}
}

fails with errors:

Tmp.java:7: error: type argument Tmp.C is not within bounds of type-variable S
    class C implements I<C,C>{}
                         ^
  where S is a type-variable:
    S extends Object declared in interface I
Tmp.java:7: error: type argument Tmp.C is not within bounds of type-variable T
    class C implements I<C,C>{}
                           ^
  where T is a type-variable:
    T extends Tmp.S declared in interface I
2 errors

if you comment class S out it compiles just fine.

reported by Zhong Yu in compiler-dev list