diff --git a/hgext/largefiles/lfutil.py b/hgext/largefiles/lfutil.py
--- a/hgext/largefiles/lfutil.py
+++ b/hgext/largefiles/lfutil.py
@@ -158,7 +158,7 @@ def openlfdirstate(ui, repo):
             try:
                 if hash == hashfile(lfile):
                     lfdirstate.normal(lfile)
-            except IOError, err:
+            except OSError, err:
                 if err.errno != errno.ENOENT:
                     raise
 
diff --git a/tests/test-largefiles.t b/tests/test-largefiles.t
--- a/tests/test-largefiles.t
+++ b/tests/test-largefiles.t
@@ -252,13 +252,12 @@ dir after a purge.
 
 Clone a largefiles repo.
 
-  $ cd ..
-  $ hg clone a b
+  $ hg clone . ../b
   updating to branch default
   5 files updated, 0 files merged, 0 files removed, 0 files unresolved
   getting changed largefiles
   3 largefiles updated, 0 removed
-  $ cd b
+  $ cd ../b
   $ hg log --template '{rev}:{node|short}  {desc|firstline}\n'
   7:daea875e9014  add/edit more largefiles
   6:4355d653f84f  edit files yet again