diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -376,7 +376,7 @@ class localrepository(repo.repository):
             f = self.opener("branches.cache")
             lines = f.read().split('\n')
             f.close()
-            last, lrev = lines.pop(0).rstrip().split(" ", 1)
+            last, lrev = lines.pop(0).split(" ", 1)
             last, lrev = bin(last), int(lrev)
             if not (lrev < self.changelog.count() and
                     self.changelog.node(lrev) == last): # sanity check
@@ -384,8 +384,8 @@ class localrepository(repo.repository):
                 raise ValueError('Invalid branch cache: unknown tip')
             for l in lines:
                 if not l: continue
-                node, label = l.rstrip().split(" ", 1)
-                partial[label] = bin(node)
+                node, label = l.split(" ", 1)
+                partial[label.strip()] = bin(node)
         except (KeyboardInterrupt, util.SignalInterrupt):
             raise
         except Exception, inst:
@@ -407,8 +407,7 @@ class localrepository(repo.repository):
         for r in xrange(start, end):
             c = self.changectx(r)
             b = c.branch()
-            if b:
-                partial[b] = c.node()
+            partial[b] = c.node()
 
     def lookup(self, key):
         if key == '.':
diff --git a/tests/test-diffdir b/tests/test-diffdir
--- a/tests/test-diffdir
+++ b/tests/test-diffdir
@@ -1,6 +1,7 @@
 #!/bin/sh
 
 hg init
+hg branch dummy # needed so -r "" doesn't point to the unnamed/default branch
 touch a
 hg add a
 hg ci -m "a" -d "1000000 0"
diff --git a/tests/test-diffdir.out b/tests/test-diffdir.out
--- a/tests/test-diffdir.out
+++ b/tests/test-diffdir.out
@@ -1,19 +1,19 @@
-diff -r acd8075edac9 b
+diff -r 4da5fa99f904 b
 --- /dev/null
 +++ b/b
 @@ -0,0 +1,1 @@
 +123
-diff -r acd8075edac9 b
+diff -r 4da5fa99f904 b
 --- /dev/null
 +++ b/b
 @@ -0,0 +1,1 @@
 +123
-diff -r acd8075edac9 a
+diff -r 4da5fa99f904 a
 --- a/a
 +++ b/a
 @@ -0,0 +1,1 @@
 +foo
-diff -r acd8075edac9 b
+diff -r 4da5fa99f904 b
 --- /dev/null
 +++ b/b
 @@ -0,0 +1,1 @@
diff --git a/tests/test-encoding.out b/tests/test-encoding.out
--- a/tests/test-encoding.out
+++ b/tests/test-encoding.out
@@ -126,10 +126,13 @@ tip                                5:db5
 é                                  3:770b9b11621d
 % ascii
 ?                              5:db5520b4645f
+                               4:9cff3c980b58
 % latin-1
 é                              5:db5520b4645f
+                               4:9cff3c980b58
 % utf-8
 é                              5:db5520b4645f
+                               4:9cff3c980b58
 % utf-8
 changeset:   5:db5520b4645f
 branch:      é
diff --git a/tests/test-log b/tests/test-log
--- a/tests/test-log
+++ b/tests/test-log
@@ -47,6 +47,7 @@ hg log -pv d
 # log --follow tests
 hg init ../follow
 cd ../follow
+hg branch dummy # needed so -r "" doesn't point to the unnamed/default branch
 echo base > base
 hg ci -Ambase -d '1 0'
 
diff --git a/tests/test-log.out b/tests/test-log.out
--- a/tests/test-log.out
+++ b/tests/test-log.out
@@ -105,19 +105,22 @@ adding base
 1 files updated, 0 files merged, 0 files removed, 0 files unresolved
 adding b1
 % log -f
-changeset:   3:e62f78d544b4
+changeset:   3:07a62f044f0d
+branch:      dummy
 tag:         tip
-parent:      1:3d5bf5654eda
+parent:      1:fb3d4e35b279
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1
 
-changeset:   1:3d5bf5654eda
+changeset:   1:fb3d4e35b279
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     r1
 
-changeset:   0:67e992f2c4f3
+changeset:   0:ea445bfed6b9
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     base
@@ -125,18 +128,21 @@ summary:     base
 1 files updated, 0 files merged, 1 files removed, 0 files unresolved
 adding b2
 % log -f -r 1:tip
-changeset:   1:3d5bf5654eda
+changeset:   1:fb3d4e35b279
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     r1
 
-changeset:   2:60c670bf5b30
+changeset:   2:e8882cbc828c
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     r2
 
-changeset:   3:e62f78d544b4
-parent:      1:3d5bf5654eda
+changeset:   3:07a62f044f0d
+branch:      dummy
+parent:      1:fb3d4e35b279
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1
@@ -145,57 +151,66 @@ 2 files updated, 0 files merged, 1 files
 1 files updated, 0 files merged, 0 files removed, 0 files unresolved
 (branch merge, don't forget to commit)
 % log --follow-first
-changeset:   6:2404bbcab562
+changeset:   6:0f621dafa603
+branch:      dummy
 tag:         tip
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1.1
 
-changeset:   5:302e9dd6890d
-parent:      3:e62f78d544b4
-parent:      4:ddb82e70d1a1
+changeset:   5:0cf53fb6dfd5
+branch:      dummy
+parent:      3:07a62f044f0d
+parent:      4:b76598590bc3
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     m12
 
-changeset:   3:e62f78d544b4
-parent:      1:3d5bf5654eda
+changeset:   3:07a62f044f0d
+branch:      dummy
+parent:      1:fb3d4e35b279
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1
 
-changeset:   1:3d5bf5654eda
+changeset:   1:fb3d4e35b279
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     r1
 
-changeset:   0:67e992f2c4f3
+changeset:   0:ea445bfed6b9
+branch:      dummy
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     base
 
 % log -P 2
-changeset:   6:2404bbcab562
+changeset:   6:0f621dafa603
+branch:      dummy
 tag:         tip
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1.1
 
-changeset:   5:302e9dd6890d
-parent:      3:e62f78d544b4
-parent:      4:ddb82e70d1a1
+changeset:   5:0cf53fb6dfd5
+branch:      dummy
+parent:      3:07a62f044f0d
+parent:      4:b76598590bc3
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     m12
 
-changeset:   4:ddb82e70d1a1
-parent:      0:67e992f2c4f3
+changeset:   4:b76598590bc3
+branch:      dummy
+parent:      0:ea445bfed6b9
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b2
 
-changeset:   3:e62f78d544b4
-parent:      1:3d5bf5654eda
+changeset:   3:07a62f044f0d
+branch:      dummy
+parent:      1:fb3d4e35b279
 user:        test
 date:        Thu Jan 01 00:00:01 1970 +0000
 summary:     b1
diff --git a/tests/test-newbranch.out b/tests/test-newbranch.out
--- a/tests/test-newbranch.out
+++ b/tests/test-newbranch.out
@@ -43,8 +43,10 @@ date:        Mon Jan 12 13:46:40 1970 +0
 summary:     initial
 
 foo                            5:5f8fb06e083e
+                               3:bf1bc2f45e83
 bar                            2:67ec16bde7f1
 foo
+
 bar
 % test for invalid branch cache
 rolling back last transaction
@@ -73,5 +75,6 @@ modify a branch
 
 4:4909a3732169
 4909a3732169c0c20011c4f4b8fdff4e3d89b23f 4
+bf1bc2f45e834c75404d0ddab57d53beab56e2f8 
 4909a3732169c0c20011c4f4b8fdff4e3d89b23f foo
 67ec16bde7f1575d523313b9bca000f6a6f12dca bar