Subject: UNIX Environment variables get lost in ver23.3 as opposed to 23.2

From: Vishwajith Singh <[email-masked]>
Date: Wed, 23 Mar 2011 11:24:27 -0700

I switched to using the latest version of emacs 23.3. and am finding an
issue.
The issues is that the ENV variables defined in the shell are lost within a
buffer.

Here's an example:
1) //Define an ENV variable call FOO
UNIX setenv FOO FOO_VALUE
2) Open up a file in emacs called junk in the same window
3) In this new file, execute the shell command Ctrl-U Shift-! "echo $FOO"
You are basically echoing the value of $FOO into the buffer junk.

This works in emacs ver23.2 but fails in ver23.3 with the message "FOO:
Undefined variable."

Why is this difference of behaviour in the latest version?
Can someone suggest a workaround..

Thanks,
- V