Don't declare variables within anonymous methods if they are supposed to be declared outside.

ICSharpCode.Decompiler/Ast/DeclareVariableInSmallestScope.cs

@@ -59,15 +59,19 @@ namespace Decompiler
 				}
 				node = node.NextSibling;
 			}
-			if (withinPos != null && withinPos.Role == BlockStatement.StatementRole && (allowPassIntoLoops || !IsLoop(pos)))
+			if (withinPos != null && withinPos.Role == BlockStatement.StatementRole && AllowPassInto(pos, allowPassIntoLoops))
 				return withinPos;
 			else
 				return pos;
 		}
 		
-		static bool IsLoop(AstNode node)
+		static bool AllowPassInto(AstNode node, bool allowPassIntoLoops)
 		{
-			return node is ForStatement || node is ForeachStatement || node is DoWhileStatement || node is WhileStatement;
+			if (node is AnonymousMethodExpression || node is LambdaExpression)
+				return false;
+			if (node is ForStatement || node is ForeachStatement || node is DoWhileStatement || node is WhileStatement)
+				return allowPassIntoLoops;
+			return true;
 		}
 	}
 }

ICSharpCode.Decompiler/Tests/DelegateConstruction.cs

@@ -2,6 +2,7 @@
 // This code is distributed under MIT X11 license (for details please see \doc\license.txt)
 
 using System;
+using System.Collections.Generic;
 
 public static class DelegateConstruction
 {
@@ -38,4 +39,24 @@ public static class DelegateConstruction
 	{
 		return new Func<string>(((string)null).ToUpper);
 	}
+	
+	public static List<Action<int>> AnonymousMethodStoreWithinLoop()
+	{
+		List<Action<int>> list = new List<Action<int>>();
+		for (int i = 0; i < 10; i++) {
+			int counter;
+			list.Add(x => counter = x);
+		}
+		return list;
+	}
+	
+	public static List<Action<int>> AnonymousMethodStoreOutsideLoop()
+	{
+		List<Action<int>> list = new List<Action<int>>();
+		int counter;
+		for (int i = 0; i < 10; i++) {
+			list.Add(x => counter = x);
+		}
+		return list;
+	}
 }