TSC fails with "Out of Memory" when using rx.js Observable.empty() in a certain way

[eyalellenbogen]

TypeScript Version:

1.8.10 (haven't tested others)

Reproduce
To reproduce, download my sample app from here https://onedrive.live.com/redir?resid=D21E8187512929BF!618745&authkey=!AIy8PGTFM15HoiI&ithint=file%2czip
run 'npm install'
then 'typings install'
then 'tsc -w'

The problem is with line 19 in app/src/app/api/ApiService.ts. When commenting out this line tsc works as expected and transpiles it within a few short seconds. When uncommenting it, tsc will take more than 15 seconds to compile and sometime even crash with an "Out of Memory" exception.
The problem seems to be specifically with the empty method under Observable from rxjs.
A workaround, as noted in line 18, is to use the generic form of the empty method and write 'Rx.Observable.empty()' instead. Another thing to notice is if we use Rx.Observable.empty() in a different file in the project there seems to be no problem. I could only reproduce this crash with this specific structure.

Expected behavior:
tsc should compile as usual

Actual behavior:
tsc hangs for 15-20 seconds (depends on the size of the app) and sometimes crashes with an "Out of Memory" exception.

[vladima]

this is a known issue with [email protected], on my box upgrading to beta-3 drops the compilation time from ~10s to ~1s