fixed http://community.sharpdevelop.net/forums/p/12068/32893.aspx#32893

src/Libraries/NRefactory/Project/Src/Lexer/VBNet/Lexer.cs

@@ -444,9 +444,15 @@ namespace ICSharpCode.NRefactory.Parser.VB
 			var queryOperators = new int[] { Tokens.From, Tokens.Aggregate, Tokens.Select, Tokens.Distinct,
 				Tokens.Where, Tokens.Order, Tokens.By, Tokens.Ascending, Tokens.Descending, Tokens.Take,
 				Tokens.Skip, Tokens.Let, Tokens.Group, Tokens.Into, Tokens.On, Tokens.While, Tokens.Join };
-			if ((queryOperators.Contains(prevTokenKind) || queryOperators.Contains(nextTokenKind))
-			    && ef.InContext(Context.Query))
-				return true;
+			if (ef.InContext(Context.Query)) {
+				// Distinct is special case
+				// fixes http://community.sharpdevelop.net/forums/p/12068/32893.aspx#32893
+				if (prevTokenKind == Tokens.Distinct && !queryOperators.Contains(nextTokenKind))
+					return false;
+				
+				if ((queryOperators.Contains(prevTokenKind) || queryOperators.Contains(nextTokenKind)))
+					return true;
+			}
 			
 			// 8th rule
 			// after binary operators (+, -, /, *, etc.) in an expression context

src/Libraries/NRefactory/Test/Lexer/VBNet/ImplicitLineContinuationTests.cs

@@ -135,6 +135,32 @@ End Module";
 			            Tokens.End, Tokens.Module);
 		}
 		
+		/// <remarks>tests http://community.sharpdevelop.net/forums/p/12068/32893.aspx#32893</remarks>
+		[Test]
+		public void Bug_Thread12068()
+		{
+			string code = @"Class MainClass
+  Public Shared Sub Main()
+	Dim categoryNames = From p In AList  _
+           Select p.AFunction(1,2,3) _
+           Distinct
+  End Sub
+End Class";
+			
+			ILexer lexer = GenerateLexer(new StringReader(code));
+			
+			CheckTokens(
+				lexer, Tokens.Class, Tokens.Identifier, Tokens.EOL,
+				Tokens.Public, Tokens.Shared, Tokens.Sub, Tokens.Identifier, Tokens.OpenParenthesis, Tokens.CloseParenthesis, Tokens.EOL,
+				Tokens.Dim, Tokens.Identifier, Tokens.Assign, Tokens.From, Tokens.Identifier, Tokens.In, Tokens.Identifier,
+				Tokens.Select, Tokens.Identifier, Tokens.Dot, Tokens.Identifier, Tokens.OpenParenthesis, Tokens.LiteralInteger,
+				Tokens.Comma, Tokens.LiteralInteger, Tokens.Comma, Tokens.LiteralInteger, Tokens.CloseParenthesis,
+				Tokens.Distinct, Tokens.EOL,
+				Tokens.End, Tokens.Sub, Tokens.EOL,
+				Tokens.End, Tokens.Class
+			);
+		}
+		
 		#region Helpers
 		ILexer GenerateLexer(StringReader sr)
 		{