Trouble evaluating embedded commands

[Van Van Cleave]

Configuration Information [Automatically generated, do not change]:
Machine: i686
OS: linux-gnu
Compiler: gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i686'
-DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='i686-pc-linux-gnu'
-DCONF_VENDOR='pc' -DLOCALEDIR='/usr/share/locale' -DPACKAGE='bash' -DSHELL
-DHAVE_CONFIG_H   -I.  -I. -I./include -I./lib   -g -O2
uname output: Linux falcon 2.6.11.12 #10 SMP Fri Jan 20 20:32:01 CST 2006
i686 pentium4 i386 GNU/Linux
Machine Type: i686-pc-linux-gnu

Bash Version: 3.1
Patch Level: 0
Release Status: release

Description:
    bash 3.1 cannot evaluate $'***' within "$(...)" and reports a bash: ***:
command not found error.

Repeat-By:
    echo "$(echo $';foo')"

Fix:
    [Description of how to fix the problem.  If you don't know a
    fix for the problem, don't include this section.]