diff --git a/CHANGES b/CHANGES
index 9a35b4209..c03429c22 100644
--- a/CHANGES
+++ b/CHANGES
@@ -62,6 +62,10 @@ Release 1.0 (in development)
 Release 0.6.4 (in development)
 ==============================
 
+* Restore compatibility with Pygments >= 1.2.
+
+* #295: Fix escaping of hyperref targets in LaTeX output.
+
 * #302: Fix links generated by the ``:doc:`` role for LaTeX output.
 
 * #286: collect todo nodes after the whole document has been read;
diff --git a/doc/concepts.rst b/doc/concepts.rst
index 277672111..5aabdd3b8 100644
--- a/doc/concepts.rst
+++ b/doc/concepts.rst
@@ -133,8 +133,8 @@ tables of contents.  The ``toctree`` directive is the central element.
    In the end, all documents in the :term:`source directory` (or subdirectories)
    must occur in some ``toctree`` directive; Sphinx will emit a warning if it
    finds a file that is not included, because that means that this file will not
-   be reachable through standard navigation.  Use :confval:`unused_documents` to
-   explicitly exclude documents from building, and :confval:`exclude_dirs` to
+   be reachable through standard navigation.  Use :confval:`unused_docs` to
+   explicitly exclude documents from building, and :confval:`exclude_trees` to
    exclude whole directories.
 
    The "master document" (selected by :confval:`master_doc`) is the "root" of
diff --git a/sphinx/highlighting.py b/sphinx/highlighting.py
index bf3ffafce..8300bd326 100644
--- a/sphinx/highlighting.py
+++ b/sphinx/highlighting.py
@@ -20,7 +20,7 @@ except ImportError:
     # parser is not available on Jython
     parser = None
 
-from sphinx.util.texescape import tex_hl_escape_map
+from sphinx.util.texescape import tex_hl_escape_map_old, tex_hl_escape_map_new
 
 try:
     import pygments
@@ -130,7 +130,7 @@ class PygmentsBridge(object):
             # first, escape highlighting characters like Pygments does
             source = source.translate(escape_hl_chars)
             # then, escape all characters nonrepresentable in LaTeX
-            source = source.translate(tex_hl_escape_map)
+            source = source.translate(tex_hl_escape_map_old)
             return '\\begin{Verbatim}[commandchars=@\\[\\]]\n' + \
                    source + '\\end{Verbatim}\n'
 
@@ -215,7 +215,10 @@ class PygmentsBridge(object):
                 return highlight(source, lexer, self.fmter[bool(linenos)])
             else:
                 hlsource = highlight(source, lexer, self.fmter[bool(linenos)])
-                return hlsource.translate(tex_hl_escape_map)
+                if hlsource.startswith(r'\begin{Verbatim}[commandchars=\\\{\}'):
+                    # Pygments >= 1.2
+                    return hlsource.translate(tex_hl_escape_map_new)
+                return hlsource.translate(tex_hl_escape_map_old)
         except ErrorToken:
             # this is most probably not the selected language,
             # so let it pass unhighlighted
diff --git a/sphinx/util/__init__.py b/sphinx/util/__init__.py
index b719b391a..e04137ee5 100644
--- a/sphinx/util/__init__.py
+++ b/sphinx/util/__init__.py
@@ -278,7 +278,6 @@ def patfilter(names, pat):
     Return the subset of the list NAMES that match PAT.
     Adapted from fnmatch module.
     """
-    result = []
     if pat not in _pat_cache:
         _pat_cache[pat] = re.compile(_translate_pattern(pat))
     match = _pat_cache[pat].match
@@ -409,7 +408,6 @@ def movefile(source, dest):
 def copytimes(source, dest):
     """Copy a file's modification times."""
     st = os.stat(source)
-    mode = stat.S_IMODE(st.st_mode)
     if hasattr(os, 'utime'):
         os.utime(dest, (st.st_atime, st.st_mtime))
 
diff --git a/sphinx/util/texescape.py b/sphinx/util/texescape.py
index 00d0325c4..737908295 100644
--- a/sphinx/util/texescape.py
+++ b/sphinx/util/texescape.py
@@ -99,8 +99,9 @@ tex_replacements = [
 ]
 
 tex_escape_map = {}
-tex_hl_escape_map = {}
-_new_cmd_chars = {ord(u'\\'): u'@', ord(u'{'): u'[', ord(u'}'): u']'}
+tex_hl_escape_map_old = {}  # replacement map for Pygments <= 1.1
+tex_hl_escape_map_new = {}  # replacement map for Pygments >= 1.2
+_old_cmd_chars = {ord(u'\\'): u'@', ord(u'{'): u'[', ord(u'}'): u']'}
 
 def init():
     for a, b in tex_replacements:
@@ -108,4 +109,5 @@ def init():
 
     for a, b in tex_replacements:
         if a in u'[]{}\\': continue
-        tex_hl_escape_map[ord(a)] = b.translate(_new_cmd_chars)
+        tex_hl_escape_map_new[ord(a)] = b
+        tex_hl_escape_map_old[ord(a)] = b.translate(_old_cmd_chars)
diff --git a/sphinx/writers/latex.py b/sphinx/writers/latex.py
index ee3a10467..35e393c54 100644
--- a/sphinx/writers/latex.py
+++ b/sphinx/writers/latex.py
@@ -253,6 +253,9 @@ class LaTeXTranslator(nodes.NodeVisitor):
         return (HEADER % self.elements + self.highlighter.get_stylesheet() +
                 u''.join(self.body) + FOOTER % self.elements)
 
+    def idescape(self, id):
+        return str(unicode(id).translate(tex_escape_map))
+
     def visit_document(self, node):
         self.footnotestack.append(self.collect_footnotes(node))
         self.curfilestack.append(node.get('docname', ''))
@@ -466,7 +469,7 @@ class LaTeXTranslator(nodes.NodeVisitor):
         d = self.descstack[-1]
         d.cls = d.cls.rstrip('.')
         if node.parent['desctype'] != 'describe' and node['ids']:
-            hyper = '\\hypertarget{%s}{}' % node['ids'][0]
+            hyper = '\\hypertarget{%s}{}' % self.idescape(node['ids'][0])
         else:
             hyper = ''
         if d.count == 0:
@@ -757,7 +760,7 @@ class LaTeXTranslator(nodes.NodeVisitor):
     def visit_term(self, node):
         ctx = '] \\leavevmode'
         if node.has_key('ids') and node['ids']:
-            ctx += '\\hypertarget{%s}{}' % node['ids'][0]
+            ctx += '\\hypertarget{%s}{}' % self.idescape(node['ids'][0])
         self.body.append('\\item[')
         self.context.append(ctx)
     def depart_term(self, node):