To Xshadow: The IBX should be making an aldehyde, not a carboxylic acid probably. Then, knoevenagle condensation followed by hydrolysis of both esters followed by decarboxylation of the beta-acid group. Edit: Also, you lost a carbon following the Sn2 adding the allyl group.
To Rolnor: in Clayden, et al (an awesome intermediate organic chem textbook, pages 617-618), a delta-lactone with two alpha hydrogens in shown doing a self-aldol process with a generic base. Not claisen, but aldol! If there is one alpha hydrogen, like in this example, I would imagine opening the lactone via transesterification should be fine because aldol condensation is not possible. But anybody in a basic introductory organic class should NEVER propose something like this with a lactone. There is a chance it will confuse and anger the professor. The proposal of ring opening via transesterification seems very common.