The neutron decay of the continuum in 208Pb, excited by small-angle inelastic scattering of 84 MeV/nucleon 17O ions in the range from 1.5° to 4.5°, has been measured. Statistical decay was found to dominate the excitation-energy interval studied, up to 60 MeV. In the excitation-energy interval of about 10 to 30 MeV a distinct direct-decay component to the hole states in 207Pb and a decay pattern resembling pre-equilibrium decay was observed. The angular correlation of the hole-state population suggests that in addition to the direct decay to the hole states in 207Pb, there is another, unidentified process populating the same states.