fusecompress_offline hangs for 50 seconds if it cannot create a temp file

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What steps will reproduce the problem?
1. Run fusecompress_offline from a directory you are not allowed to write to.

What is the expected output? What do you see instead?

It should come back with an error; instead, it hangs. According to the comment 
in the code, that is because mkstemp() "may fail" and needs to be retried. I 
find that hard to believe... At any rate, it will make file_create_temp() hang 
for almost a minute!

Original issue reported on code.google.com by ulrich.h...@gmail.com on 10 Jun 2011 at 12:30