if you have to use C++ without exceptions (console video games), then goto is much needed to handle exceptional situations locally. For example there would be label "fail:;" or "out:;" at the end of the function, where release of resource would happen, and you would "goto" to it, rather than releasing the resources in multiple exceptional places and return from there.
Interesting. I rarely program in an environment without exceptions, so I haven't had reason to adopt that style.
I recall that Linus has advocated the use of goto in the Linux kernel for similar reasons. And the goto version of this code does seem more readable to me: http://kerneltrap.org/node/553/2131
If you are using C++ (even without exceptions), then RAII (Resource Acquisition Is Initialization) with resources freed in local variables' destructors is a better solution.
I never use goto, but I often use multiple returns similar to the examples in this article.
I have sadly code reviewed many pieces of code with the nesting problem.