It appears that stack overflow checks for recusrive stored procedure
calls, that run in the normal server, did not work in embedded and were
 dummified with preprocessor magic( #ifndef EMBEDDED_SERVER ).
      
 The fix is to remove ifdefs, there is no reason not to run overflow checks
 and crash in deeply recursive calls. 
      
 Note: Start of the stack (thd->thread_stack variable) in embedded is not
necessarily exact but stil provides the best guess. Unless the caller of 
mysql_read_connect()   is already deep in the stack, thd->thread_stack 
variable should approximate stack  start address well.