Thanks. A new version of hyperref solves the problem. But putting the language 
as a global option does break some other packages, for example, the newest 
slide making package "prosper" will be broken if the global language option is 
used.

Does it make more sense that the language option is specified at the place 
where it is used, i.e., by:
    \usepackage[language]{babel}

Min



> > ! LaTeX Error: Missing \begin{document}.
> > 
> > See the LaTeX manual or LaTeX Companion for explanation.
> > Type  H <return>  for immediate help.
> > ...                                             
> >                                                 
> > l.1478 \ProcessOptionsWithKV{Hyp}
> 
> I think that the problem here is the hyperref package.
> Try installing the latest version of hyperref from CTAN.


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