SvLEN( c ) = 2;
[download]

should be

SvLEN( c ) = 0;
[download]

since Perl isn't free to free the buffer. Furthermore, you replace the buffer you created with newSV without ever deallocating it, so you are leaking.

Solution 1:

void strIter(SV* code, SV* string)  {
    dSP;
    STRLEN i;
    char* src = SvPV(string, i);
    SV* c;

    c = newSV_type(SVt_PV);
    SvCUR(c) = 1;
    SvLEN(c) = 0;
    SvPOK_only(c);

    SAVE_DEFSV;
    DEFSV_set(c);

    while (i--) {
        SvPVX(c) = src++;
        PUSHMARK(SP);
        call_sv(code, G_NOARGS | G_VOID | G_DISCARD);
    }
}
[download]

Solution 2:

void strIter(SV* code, SV* string)  {
    dSP;
    STRLEN i;
    char* src = SvPV(string, i);
    char* dst;
    SV* c;

    c = newSVpvn(" ", 1);
    dst = SvPVX(c);

    SAVE_DEFSV;
    DEFSV_set(c);

    while (i--) {
        *dst = *(src++);
        PUSHMARK(SP);
        call_sv(code, G_NOARGS | G_VOID | G_DISCARD);
    }
}
[download]

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