Index: gcc/config/picochip/picochip.c
===================================================================
--- gcc/config/picochip/picochip.c      (revision 174269)
+++ gcc/config/picochip/picochip.c      (working copy)
@@ -3243,13 +3243,20 @@
                      }
                  }
              }
-          else if (NOTE_P (insn) && NOTE_KIND (insn) == 
NOTE_INSN_VAR_LOCATION)
+          else if (NOTE_P (insn))
              {
                 rtx prev = PREV_INSN (insn);
                 PREV_INSN (next) = prev;
                 NEXT_INSN (prev) = next;
-               PREV_INSN (insn) = queue;
-               queue = insn;
+               /* Ignore call_arg notes. They are expected to be just 
after the
+                  call insn. If the call is start of a long VLIW, 
labels are
+                  emitted in the middle of a VLIW, which our assembler 
can not
+                  handle. */
+               if (NOTE_KIND (insn) != NOTE_INSN_CALL_ARG_LOCATION)
+                 {
+                   PREV_INSN (insn) = queue;
+                   queue = insn;