Material compiler incorrectly generates error

Under certain conditions, the material compiler appears to detect errors where there are none. I debugged the particular case of the RGBtoHSV material function with JonathanL, and we believe that this is a bug in the compiler.

In an attempt to track down the issue, I copy/pasted the contents of the RGBtoHSV function directly into the material. This showed that two of the if-nodes supposedly had wrong inputs. Both inputs expect float values, and the inputs are float indeed. However, the material compiler determines that the inputs are not compatible and prints an error. Perhaps the error masks another problem in a different node, and the error message is misleading. I was not able to determine whether this is the case.

1) Create a new material
2) Wire up the RGBtoHSV material function as shown in materialeditor2.jpg

Result: The RGBtoHSV function is shown to have an error

MediaTexture doesn't work with RGBtoHSV or world displacement