bug#10803: 24.0.93; execute-kbd-macro doesn't preserve current buffer

[Jambunathan K]

Copy the below snippet to scratch buffer and C-x C-e it.

(with-temp-buffer  
  (message "1:%s" (buffer-name))
  (execute-kbd-macro "ab")
  (message "2:%s" (buffer-name))
  "Done")

This is what gets printed in the message buffer.
1: *temp*<2>
2:*scratch*
"Done"

I am wondering why execute-kbd-macro is meddling with the current
buffer, (that too in not so useful way). 

This bug is raised as a post-mortem of the following thread in
help-gnu-emacs which deals with transliteration from Roman text to
Hindi.

http://lists.gnu.org/archive/html/help-gnu-emacs/2012-02/msg00149.html
http://lists.gnu.org/archive/html/help-gnu-emacs/2012-02/msg00152.html

In GNU Emacs 24.0.93.1 (i386-mingw-nt5.1.2600)
 of 2012-01-30 on MARVIN
Windowing system distributor `Microsoft Corp.', version 5.1.2600
Configured using:
 `configure --with-gcc (4.6) --no-opt --cflags
 -ID:/devel/emacs/libs/libXpm-3.5.8/include
 -ID:/devel/emacs/libs/libXpm-3.5.8/src
 -ID:/devel/emacs/libs/libpng-dev_1.4.3-1/include
 -ID:/devel/emacs/libs/zlib-dev_1.2.5-2/include
 -ID:/devel/emacs/libs/giflib-4.1.4-1/include
 -ID:/devel/emacs/libs/jpeg-6b-4/include
 -ID:/devel/emacs/libs/tiff-3.8.2-1/include
 -ID:/devel/emacs/libs/gnutls-3.0.9/include --ldflags
 -LD:/devel/emacs/libs/gnutls-3.0.9/lib'