Troublesome Block Entmod(ing)

Hi guys,
It's time for me to put on my LISP hat again (it's been awhile and I'm rusty). I've cobbled together a program (from chunks of code some of you will recognize) to satisfy a request from a structural engineer to move all text objects in an architectural background (except those on the column buble layer) to a brand new layer (and freeze it) and then change all the objects in the drawing to display "bylayer" - for our x-referencing ease. The difficulties come with blocks with nested text, attributes and mtext. I've been able to get quite a lot of it to work, however I seem to be maxing out autolisp (if that's possible). I get about 1700 blocks modified, but then I get the following message..

Command: Hard error occurred ***
internal stack limit reached (simulated)

Here is my hacked together program. Does anyone have any suggestions as to what the trouble is and how it might be corrected? I really appreciate you guys helping me out when i hit these walls!

;;; ADAPTED FROM TxTRot by Jason Piercey 12-12-01 AND TABLE by Michael Puckett MODIFIED by Ron Powell 07-02-04
; This routine moves all text (except column buble text on layer "s-grid-text1-32") to layer "ALLTEXT".
(defun CREP (/ ss1 B1 ss2 SE1 i EBLK Ent EntLst ELAY SET1 SUBENTLST KIND RPT)
(COMMAND "-PURGE" "B" "" "N")
(command "-layer" "M" "ALLTEXT" "S" "0" "F" "ALLTEXT" "")

(setq ss1 (ssget "x" '((-4 . "<OR")
(0 . "TEXT")
(0 . "MTEXT")
(0 . "ATTDEF")
(-4 . "OR>")
)
)
i 0
)
(repeat (sslength ss1)

(setq Ent (ssname ss1 i)
EntLst (entget Ent)
ELAY (cdr (assoc 08 EntLst))
)
(IF
(/= (STRCASE "S-GRID-TEXT1-32") ELAY )
(PROGN
(setq EntLst (subst (cons 08 "ALLTEXT") (assoc 08 EntLst) EntLst)
)
(entmod EntLst)
(ENTUPD Ent)
)
)
(setq i (1+ i))
)
;;;------------------------------------------------
;;;

(defun table (x / d r);;michael puckett
(if (member (read x) '(appid block dimstyle layer ltype style ucs view vport))
(reverse
(while (setq d (tblnext x (null d)))
(setq r (cons (cdr (assoc 2 d)) r))
)
)
)
)
(SETQ RPT (- (LENGTH (TABLE "BLOCK")) 1))


(setq B1 (TBLNEXT "BLOCK" T))
(SETQ SE1 (CDR (ASSOC -2 B1)))
(SETQ KIND (CDR (ASSOC 0 (ENTGET SE1))))

(DEFUN CRUNCH ()
(COND
((OR
(equal "TEXT" KIND)
(equal "MTEXT" KIND)
(equal "ATTDEF" KIND))
(SETQ SUBENTLST (ENTGET SE1))
(setq SUBEntLst (subst (cons 08 "ALLTEXT") (assoc 08 SUBEntLst) SUBEntLst)
)
(entmod SUBEntLst)
(ENTUPD B1)
)
((SETQ SE1 (ENTNEXT))
(SETQ KIND (CDR (ASSOC 0 (ENTGET SE1))))
(CRUNCH)
)
)
)
(CRUNCH)
(REPEAT RPT
(TBLNEXT "BLOCK")
(CRUNCH)
)
;;;------------------------------------------------
(setq SET1 (ssget "x"))
(command "change" SET1 "" "P" "C" "BYLAYER" "p" "lt" "bylayer" "p" "lw" "bylayer" "")
(PRINC)
)