diff --git a/hgext/mq.py b/hgext/mq.py
--- a/hgext/mq.py
+++ b/hgext/mq.py
@@ -179,11 +179,11 @@ class queue:
         self.ui.warn("patch didn't work out, merging %s\n" % patch)
 
         # apply failed, strip away that rev and merge.
-        repo.update(head, allow=False, force=True, wlock=wlock)
+        hg.update(repo, head, allow=False, force=True, wlock=wlock)
         self.strip(repo, n, update=False, backup='strip', wlock=wlock)
 
         c = repo.changelog.read(rev)
-        ret = repo.update(rev, allow=True, wlock=wlock)
+        ret = hg.update(repo, rev, allow=True, wlock=wlock)
         if ret:
             raise util.Abort(_("update returned %d") % ret)
         n = repo.commit(None, c[4], c[1], force=1, wlock=wlock)
@@ -299,7 +299,7 @@ class queue:
                 self.ui.warn(l + '\n')
 
         return (not f.close(), files, fuzz)
-        
+
     def apply(self, repo, series, list=False, update_status=True,
               strict=False, patchdir=None, merge=None, wlock=None):
         # TODO unify with commands.py
@@ -526,7 +526,7 @@ class queue:
             if c or a or d or r:
                 raise util.Abort(_("local changes found"))
             urev = self.qparents(repo, rev)
-            repo.update(urev, allow=False, force=True, wlock=wlock)
+            hg.update(repo, urev, allow=False, force=True, wlock=wlock)
             repo.dirstate.write()
 
         # save is a list of all the branches we are truncating away
@@ -1023,7 +1023,7 @@ class queue:
                 if not r:
                     self.ui.warn("Unable to load queue repository\n")
                     return 1
-                r.update(qpp[0], allow=False, force=True)
+                hg.update(r, qpp[0], allow=False, force=True)
 
     def save(self, repo, msg=None):
         if len(self.applied) == 0:
@@ -1245,7 +1245,7 @@ def clone(ui, source, dest=None, **opts)
             dr.mq.strip(dr, qbase, update=False, backup=None)
         if not opts['noupdate']:
             ui.note(_('updating destination repo\n'))
-            dr.update(dr.changelog.tip())
+            hg.update(dr, dr.changelog.tip())
 
 def commit(ui, repo, *pats, **opts):
     """commit changes in the queue repository"""
diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -921,7 +921,7 @@ def backout(ui, repo, rev, **opts):
         if opts['parent']:
             raise util.Abort(_('cannot use --parent on non-merge changeset'))
         parent = p1
-    repo.update(node, force=True, show_stats=False)
+    hg.update(repo, node, force=True, show_stats=False)
     revert_opts = opts.copy()
     revert_opts['rev'] = hex(parent)
     revert(ui, repo, **revert_opts)
@@ -2542,8 +2542,8 @@ def revert(ui, repo, *pats, **opts):
 
     if not opts.get('dry_run'):
         repo.dirstate.forget(forget[0])
-        r = repo.update(node, False, True, update.has_key, False, wlock=wlock,
-                        show_stats=False)
+        r = hg.update(repo, node, False, True, update.has_key, False,
+                      wlock=wlock, show_stats=False)
         repo.dirstate.update(add[0], 'a')
         repo.dirstate.update(undelete[0], 'n')
         repo.dirstate.update(remove[0], 'r')
@@ -2867,7 +2867,7 @@ def doupdate(ui, repo, node=None, merge=
             return 1
     else:
         node = node and repo.lookup(node) or repo.changelog.tip()
-    return repo.update(node, allow=merge, force=clean, forcemerge=force)
+    return hg.update(repo, node, allow=merge, force=clean, forcemerge=force)
 
 def verify(ui, repo):
     """verify the integrity of the repository
diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -10,7 +10,7 @@ from repo import *
 from demandload import *
 from i18n import gettext as _
 demandload(globals(), "localrepo bundlerepo httprepo sshrepo statichttprepo")
-demandload(globals(), "errno lock os shutil util")
+demandload(globals(), "errno lock os shutil util merge")
 
 def _local(path):
     return (os.path.isfile(path and util.drop_scheme('file', path)) and
@@ -38,7 +38,7 @@ def _lookup(path):
         return thing(path)
     except TypeError:
         return thing
-    
+
 def islocal(repo):
     '''return true if repo or path is local'''
     if isinstance(repo, str):
@@ -200,8 +200,17 @@ def clone(ui, source, dest=None, pull=Fa
             dest_lock.release()
 
         if update:
-            dest_repo.update(dest_repo.changelog.tip())
+            merge.update(dest_repo, dest_repo.changelog.tip())
     if dir_cleanup:
         dir_cleanup.close()
 
     return src_repo, dest_repo
+
+
+# This should instead be several functions with short arglists, like
+# update/merge/revert
+
+def update(repo, node, allow=False, force=False, choose=None,
+           moddirstate=True, forcemerge=False, wlock=None, show_stats=True):
+    return merge.update(repo, node, allow, force, choose, moddirstate,
+                        forcemerge, wlock, show_stats)
diff --git a/mercurial/localrepo.py b/mercurial/localrepo.py
--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -1693,342 +1693,6 @@ class localrepository(repo.repository):
 
         return newheads - oldheads + 1
 
-    def update(self, node, allow=False, force=False, choose=None,
-               moddirstate=True, forcemerge=False, wlock=None, show_stats=True):
-        pl = self.dirstate.parents()
-        if not force and pl[1] != nullid:
-            raise util.Abort(_("outstanding uncommitted merges"))
-
-        err = False
-
-        p1, p2 = pl[0], node
-        pa = self.changelog.ancestor(p1, p2)
-        m1n = self.changelog.read(p1)[0]
-        m2n = self.changelog.read(p2)[0]
-        man = self.manifest.ancestor(m1n, m2n)
-        m1 = self.manifest.read(m1n)
-        mf1 = self.manifest.readflags(m1n)
-        m2 = self.manifest.read(m2n).copy()
-        mf2 = self.manifest.readflags(m2n)
-        ma = self.manifest.read(man)
-        mfa = self.manifest.readflags(man)
-
-        modified, added, removed, deleted, unknown = self.changes()
-
-        # is this a jump, or a merge?  i.e. is there a linear path
-        # from p1 to p2?
-        linear_path = (pa == p1 or pa == p2)
-
-        if allow and linear_path:
-            raise util.Abort(_("there is nothing to merge, just use "
-                               "'hg update' or look at 'hg heads'"))
-        if allow and not forcemerge:
-            if modified or added or removed:
-                raise util.Abort(_("outstanding uncommitted changes"))
-
-        if not forcemerge and not force:
-            for f in unknown:
-                if f in m2:
-                    t1 = self.wread(f)
-                    t2 = self.file(f).read(m2[f])
-                    if cmp(t1, t2) != 0:
-                        raise util.Abort(_("'%s' already exists in the working"
-                                           " dir and differs from remote") % f)
-
-        # resolve the manifest to determine which files
-        # we care about merging
-        self.ui.note(_("resolving manifests\n"))
-        self.ui.debug(_(" force %s allow %s moddirstate %s linear %s\n") %
-                      (force, allow, moddirstate, linear_path))
-        self.ui.debug(_(" ancestor %s local %s remote %s\n") %
-                      (short(man), short(m1n), short(m2n)))
-
-        merge = {}
-        get = {}
-        remove = []
-
-        # construct a working dir manifest
-        mw = m1.copy()
-        mfw = mf1.copy()
-        umap = dict.fromkeys(unknown)
-
-        for f in added + modified + unknown:
-            mw[f] = ""
-            mfw[f] = util.is_exec(self.wjoin(f), mfw.get(f, False))
-
-        if moddirstate and not wlock:
-            wlock = self.wlock()
-
-        for f in deleted + removed:
-            if f in mw:
-                del mw[f]
-
-            # If we're jumping between revisions (as opposed to merging),
-            # and if neither the working directory nor the target rev has
-            # the file, then we need to remove it from the dirstate, to
-            # prevent the dirstate from listing the file when it is no
-            # longer in the manifest.
-            if moddirstate and linear_path and f not in m2:
-                self.dirstate.forget((f,))
-
-        # Compare manifests
-        for f, n in mw.iteritems():
-            if choose and not choose(f):
-                continue
-            if f in m2:
-                s = 0
-
-                # is the wfile new since m1, and match m2?
-                if f not in m1:
-                    t1 = self.wread(f)
-                    t2 = self.file(f).read(m2[f])
-                    if cmp(t1, t2) == 0:
-                        n = m2[f]
-                    del t1, t2
-
-                # are files different?
-                if n != m2[f]:
-                    a = ma.get(f, nullid)
-                    # are both different from the ancestor?
-                    if n != a and m2[f] != a:
-                        self.ui.debug(_(" %s versions differ, resolve\n") % f)
-                        # merge executable bits
-                        # "if we changed or they changed, change in merge"
-                        a, b, c = mfa.get(f, 0), mfw[f], mf2[f]
-                        mode = ((a^b) | (a^c)) ^ a
-                        merge[f] = (m1.get(f, nullid), m2[f], mode)
-                        s = 1
-                    # are we clobbering?
-                    # is remote's version newer?
-                    # or are we going back in time?
-                    elif force or m2[f] != a or (p2 == pa and mw[f] == m1[f]):
-                        self.ui.debug(_(" remote %s is newer, get\n") % f)
-                        get[f] = m2[f]
-                        s = 1
-                elif f in umap or f in added:
-                    # this unknown file is the same as the checkout
-                    # we need to reset the dirstate if the file was added
-                    get[f] = m2[f]
-
-                if not s and mfw[f] != mf2[f]:
-                    if force:
-                        self.ui.debug(_(" updating permissions for %s\n") % f)
-                        util.set_exec(self.wjoin(f), mf2[f])
-                    else:
-                        a, b, c = mfa.get(f, 0), mfw[f], mf2[f]
-                        mode = ((a^b) | (a^c)) ^ a
-                        if mode != b:
-                            self.ui.debug(_(" updating permissions for %s\n")
-                                          % f)
-                            util.set_exec(self.wjoin(f), mode)
-                del m2[f]
-            elif f in ma:
-                if n != ma[f]:
-                    r = _("d")
-                    if not force and (linear_path or allow):
-                        r = self.ui.prompt(
-                            (_(" local changed %s which remote deleted\n") % f) +
-                             _("(k)eep or (d)elete?"), _("[kd]"), _("k"))
-                    if r == _("d"):
-                        remove.append(f)
-                else:
-                    self.ui.debug(_("other deleted %s\n") % f)
-                    remove.append(f) # other deleted it
-            else:
-                # file is created on branch or in working directory
-                if force and f not in umap:
-                    self.ui.debug(_("remote deleted %s, clobbering\n") % f)
-                    remove.append(f)
-                elif n == m1.get(f, nullid): # same as parent
-                    if p2 == pa: # going backwards?
-                        self.ui.debug(_("remote deleted %s\n") % f)
-                        remove.append(f)
-                    else:
-                        self.ui.debug(_("local modified %s, keeping\n") % f)
-                else:
-                    self.ui.debug(_("working dir created %s, keeping\n") % f)
-
-        for f, n in m2.iteritems():
-            if choose and not choose(f):
-                continue
-            if f[0] == "/":
-                continue
-            if f in ma and n != ma[f]:
-                r = _("k")
-                if not force and (linear_path or allow):
-                    r = self.ui.prompt(
-                        (_("remote changed %s which local deleted\n") % f) +
-                         _("(k)eep or (d)elete?"), _("[kd]"), _("k"))
-                if r == _("k"):
-                    get[f] = n
-            elif f not in ma:
-                self.ui.debug(_("remote created %s\n") % f)
-                get[f] = n
-            else:
-                if force or p2 == pa: # going backwards?
-                    self.ui.debug(_("local deleted %s, recreating\n") % f)
-                    get[f] = n
-                else:
-                    self.ui.debug(_("local deleted %s\n") % f)
-
-        del mw, m1, m2, ma
-
-        if force:
-            for f in merge:
-                get[f] = merge[f][1]
-            merge = {}
-
-        if linear_path or force:
-            # we don't need to do any magic, just jump to the new rev
-            branch_merge = False
-            p1, p2 = p2, nullid
-        else:
-            if not allow:
-                self.ui.status(_("this update spans a branch"
-                                 " affecting the following files:\n"))
-                fl = merge.keys() + get.keys()
-                fl.sort()
-                for f in fl:
-                    cf = ""
-                    if f in merge:
-                        cf = _(" (resolve)")
-                    self.ui.status(" %s%s\n" % (f, cf))
-                self.ui.warn(_("aborting update spanning branches!\n"))
-                self.ui.status(_("(use 'hg merge' to merge across branches"
-                                 " or 'hg update -C' to lose changes)\n"))
-                return 1
-            branch_merge = True
-
-        xp1 = hex(p1)
-        xp2 = hex(p2)
-        if p2 == nullid: xxp2 = ''
-        else: xxp2 = xp2
-
-        self.hook('preupdate', throw=True, parent1=xp1, parent2=xxp2)
-
-        # get the files we don't need to change
-        files = get.keys()
-        files.sort()
-        for f in files:
-            if f[0] == "/":
-                continue
-            self.ui.note(_("getting %s\n") % f)
-            t = self.file(f).read(get[f])
-            self.wwrite(f, t)
-            util.set_exec(self.wjoin(f), mf2[f])
-            if moddirstate:
-                if branch_merge:
-                    self.dirstate.update([f], 'n', st_mtime=-1)
-                else:
-                    self.dirstate.update([f], 'n')
-
-        # merge the tricky bits
-        failedmerge = []
-        files = merge.keys()
-        files.sort()
-        for f in files:
-            self.ui.status(_("merging %s\n") % f)
-            my, other, flag = merge[f]
-            ret = self.merge3(f, my, other, xp1, xp2)
-            if ret:
-                err = True
-                failedmerge.append(f)
-            util.set_exec(self.wjoin(f), flag)
-            if moddirstate:
-                if branch_merge:
-                    # We've done a branch merge, mark this file as merged
-                    # so that we properly record the merger later
-                    self.dirstate.update([f], 'm')
-                else:
-                    # We've update-merged a locally modified file, so
-                    # we set the dirstate to emulate a normal checkout
-                    # of that file some time in the past. Thus our
-                    # merge will appear as a normal local file
-                    # modification.
-                    f_len = len(self.file(f).read(other))
-                    self.dirstate.update([f], 'n', st_size=f_len, st_mtime=-1)
-
-        remove.sort()
-        for f in remove:
-            self.ui.note(_("removing %s\n") % f)
-            util.audit_path(f)
-            try:
-                util.unlink(self.wjoin(f))
-            except OSError, inst:
-                if inst.errno != errno.ENOENT:
-                    self.ui.warn(_("update failed to remove %s: %s!\n") %
-                                 (f, inst.strerror))
-        if moddirstate:
-            if branch_merge:
-                self.dirstate.update(remove, 'r')
-            else:
-                self.dirstate.forget(remove)
-
-        if moddirstate:
-            self.dirstate.setparents(p1, p2)
-
-        if show_stats:
-            stats = ((len(get), _("updated")),
-                     (len(merge) - len(failedmerge), _("merged")),
-                     (len(remove), _("removed")),
-                     (len(failedmerge), _("unresolved")))
-            note = ", ".join([_("%d files %s") % s for s in stats])
-            self.ui.status("%s\n" % note)
-        if moddirstate:
-            if branch_merge:
-                if failedmerge:
-                    self.ui.status(_("There are unresolved merges,"
-                                    " you can redo the full merge using:\n"
-                                    "  hg update -C %s\n"
-                                    "  hg merge %s\n"
-                                    % (self.changelog.rev(p1),
-                                        self.changelog.rev(p2))))
-                else:
-                    self.ui.status(_("(branch merge, don't forget to commit)\n"))
-            elif failedmerge:
-                self.ui.status(_("There are unresolved merges with"
-                                 " locally modified files.\n"))
-
-        self.hook('update', parent1=xp1, parent2=xxp2, error=int(err))
-        return err
-
-    def merge3(self, fn, my, other, p1, p2):
-        """perform a 3-way merge in the working directory"""
-
-        def temp(prefix, node):
-            pre = "%s~%s." % (os.path.basename(fn), prefix)
-            (fd, name) = tempfile.mkstemp(prefix=pre)
-            f = os.fdopen(fd, "wb")
-            self.wwrite(fn, fl.read(node), f)
-            f.close()
-            return name
-
-        fl = self.file(fn)
-        base = fl.ancestor(my, other)
-        a = self.wjoin(fn)
-        b = temp("base", base)
-        c = temp("other", other)
-
-        self.ui.note(_("resolving %s\n") % fn)
-        self.ui.debug(_("file %s: my %s other %s ancestor %s\n") %
-                              (fn, short(my), short(other), short(base)))
-
-        cmd = (os.environ.get("HGMERGE") or self.ui.config("ui", "merge")
-               or "hgmerge")
-        r = util.system('%s "%s" "%s" "%s"' % (cmd, a, b, c), cwd=self.root,
-                        environ={'HG_FILE': fn,
-                                 'HG_MY_NODE': p1,
-                                 'HG_OTHER_NODE': p2,
-                                 'HG_FILE_MY_NODE': hex(my),
-                                 'HG_FILE_OTHER_NODE': hex(other),
-                                 'HG_FILE_BASE_NODE': hex(base)})
-        if r:
-            self.ui.warn(_("merging %s failed!\n") % fn)
-
-        os.unlink(b)
-        os.unlink(c)
-        return r
-
     def verify(self):
         filelinkrevs = {}
         filenodes = {}
diff --git a/mercurial/merge.py b/mercurial/merge.py
new file mode 100644
--- /dev/null
+++ b/mercurial/merge.py
@@ -0,0 +1,348 @@
+# merge.py - directory-level update/merge handling for Mercurial
+#
+# Copyright 2006 Matt Mackall <mpm@selenic.com>
+#
+# This software may be used and distributed according to the terms
+# of the GNU General Public License, incorporated herein by reference.
+
+from node import *
+from i18n import gettext as _
+from demandload import *
+demandload(globals(), "util os tempfile")
+
+def merge3(repo, fn, my, other, p1, p2):
+    """perform a 3-way merge in the working directory"""
+
+    def temp(prefix, node):
+        pre = "%s~%s." % (os.path.basename(fn), prefix)
+        (fd, name) = tempfile.mkstemp(prefix=pre)
+        f = os.fdopen(fd, "wb")
+        repo.wwrite(fn, fl.read(node), f)
+        f.close()
+        return name
+
+    fl = repo.file(fn)
+    base = fl.ancestor(my, other)
+    a = repo.wjoin(fn)
+    b = temp("base", base)
+    c = temp("other", other)
+
+    repo.ui.note(_("resolving %s\n") % fn)
+    repo.ui.debug(_("file %s: my %s other %s ancestor %s\n") %
+                          (fn, short(my), short(other), short(base)))
+
+    cmd = (os.environ.get("HGMERGE") or repo.ui.config("ui", "merge")
+           or "hgmerge")
+    r = util.system('%s "%s" "%s" "%s"' % (cmd, a, b, c), cwd=repo.root,
+                    environ={'HG_FILE': fn,
+                             'HG_MY_NODE': p1,
+                             'HG_OTHER_NODE': p2,
+                             'HG_FILE_MY_NODE': hex(my),
+                             'HG_FILE_OTHER_NODE': hex(other),
+                             'HG_FILE_BASE_NODE': hex(base)})
+    if r:
+        repo.ui.warn(_("merging %s failed!\n") % fn)
+
+    os.unlink(b)
+    os.unlink(c)
+    return r
+
+def update(repo, node, allow=False, force=False, choose=None,
+           moddirstate=True, forcemerge=False, wlock=None, show_stats=True):
+    pl = repo.dirstate.parents()
+    if not force and pl[1] != nullid:
+        raise util.Abort(_("outstanding uncommitted merges"))
+
+    err = False
+
+    p1, p2 = pl[0], node
+    pa = repo.changelog.ancestor(p1, p2)
+    m1n = repo.changelog.read(p1)[0]
+    m2n = repo.changelog.read(p2)[0]
+    man = repo.manifest.ancestor(m1n, m2n)
+    m1 = repo.manifest.read(m1n)
+    mf1 = repo.manifest.readflags(m1n)
+    m2 = repo.manifest.read(m2n).copy()
+    mf2 = repo.manifest.readflags(m2n)
+    ma = repo.manifest.read(man)
+    mfa = repo.manifest.readflags(man)
+
+    modified, added, removed, deleted, unknown = repo.changes()
+
+    # is this a jump, or a merge?  i.e. is there a linear path
+    # from p1 to p2?
+    linear_path = (pa == p1 or pa == p2)
+
+    if allow and linear_path:
+        raise util.Abort(_("there is nothing to merge, just use "
+                           "'hg update' or look at 'hg heads'"))
+    if allow and not forcemerge:
+        if modified or added or removed:
+            raise util.Abort(_("outstanding uncommitted changes"))
+
+    if not forcemerge and not force:
+        for f in unknown:
+            if f in m2:
+                t1 = repo.wread(f)
+                t2 = repo.file(f).read(m2[f])
+                if cmp(t1, t2) != 0:
+                    raise util.Abort(_("'%s' already exists in the working"
+                                       " dir and differs from remote") % f)
+
+    # resolve the manifest to determine which files
+    # we care about merging
+    repo.ui.note(_("resolving manifests\n"))
+    repo.ui.debug(_(" force %s allow %s moddirstate %s linear %s\n") %
+                  (force, allow, moddirstate, linear_path))
+    repo.ui.debug(_(" ancestor %s local %s remote %s\n") %
+                  (short(man), short(m1n), short(m2n)))
+
+    merge = {}
+    get = {}
+    remove = []
+
+    # construct a working dir manifest
+    mw = m1.copy()
+    mfw = mf1.copy()
+    umap = dict.fromkeys(unknown)
+
+    for f in added + modified + unknown:
+        mw[f] = ""
+        mfw[f] = util.is_exec(repo.wjoin(f), mfw.get(f, False))
+
+    if moddirstate and not wlock:
+        wlock = repo.wlock()
+
+    for f in deleted + removed:
+        if f in mw:
+            del mw[f]
+
+        # If we're jumping between revisions (as opposed to merging),
+        # and if neither the working directory nor the target rev has
+        # the file, then we need to remove it from the dirstate, to
+        # prevent the dirstate from listing the file when it is no
+        # longer in the manifest.
+        if moddirstate and linear_path and f not in m2:
+            repo.dirstate.forget((f,))
+
+    # Compare manifests
+    for f, n in mw.iteritems():
+        if choose and not choose(f):
+            continue
+        if f in m2:
+            s = 0
+
+            # is the wfile new since m1, and match m2?
+            if f not in m1:
+                t1 = repo.wread(f)
+                t2 = repo.file(f).read(m2[f])
+                if cmp(t1, t2) == 0:
+                    n = m2[f]
+                del t1, t2
+
+            # are files different?
+            if n != m2[f]:
+                a = ma.get(f, nullid)
+                # are both different from the ancestor?
+                if n != a and m2[f] != a:
+                    repo.ui.debug(_(" %s versions differ, resolve\n") % f)
+                    # merge executable bits
+                    # "if we changed or they changed, change in merge"
+                    a, b, c = mfa.get(f, 0), mfw[f], mf2[f]
+                    mode = ((a^b) | (a^c)) ^ a
+                    merge[f] = (m1.get(f, nullid), m2[f], mode)
+                    s = 1
+                # are we clobbering?
+                # is remote's version newer?
+                # or are we going back in time?
+                elif force or m2[f] != a or (p2 == pa and mw[f] == m1[f]):
+                    repo.ui.debug(_(" remote %s is newer, get\n") % f)
+                    get[f] = m2[f]
+                    s = 1
+            elif f in umap or f in added:
+                # this unknown file is the same as the checkout
+                # we need to reset the dirstate if the file was added
+                get[f] = m2[f]
+
+            if not s and mfw[f] != mf2[f]:
+                if force:
+                    repo.ui.debug(_(" updating permissions for %s\n") % f)
+                    util.set_exec(repo.wjoin(f), mf2[f])
+                else:
+                    a, b, c = mfa.get(f, 0), mfw[f], mf2[f]
+                    mode = ((a^b) | (a^c)) ^ a
+                    if mode != b:
+                        repo.ui.debug(_(" updating permissions for %s\n")
+                                      % f)
+                        util.set_exec(repo.wjoin(f), mode)
+            del m2[f]
+        elif f in ma:
+            if n != ma[f]:
+                r = _("d")
+                if not force and (linear_path or allow):
+                    r = repo.ui.prompt(
+                        (_(" local changed %s which remote deleted\n") % f) +
+                         _("(k)eep or (d)elete?"), _("[kd]"), _("k"))
+                if r == _("d"):
+                    remove.append(f)
+            else:
+                repo.ui.debug(_("other deleted %s\n") % f)
+                remove.append(f) # other deleted it
+        else:
+            # file is created on branch or in working directory
+            if force and f not in umap:
+                repo.ui.debug(_("remote deleted %s, clobbering\n") % f)
+                remove.append(f)
+            elif n == m1.get(f, nullid): # same as parent
+                if p2 == pa: # going backwards?
+                    repo.ui.debug(_("remote deleted %s\n") % f)
+                    remove.append(f)
+                else:
+                    repo.ui.debug(_("local modified %s, keeping\n") % f)
+            else:
+                repo.ui.debug(_("working dir created %s, keeping\n") % f)
+
+    for f, n in m2.iteritems():
+        if choose and not choose(f):
+            continue
+        if f[0] == "/":
+            continue
+        if f in ma and n != ma[f]:
+            r = _("k")
+            if not force and (linear_path or allow):
+                r = repo.ui.prompt(
+                    (_("remote changed %s which local deleted\n") % f) +
+                     _("(k)eep or (d)elete?"), _("[kd]"), _("k"))
+            if r == _("k"):
+                get[f] = n
+        elif f not in ma:
+            repo.ui.debug(_("remote created %s\n") % f)
+            get[f] = n
+        else:
+            if force or p2 == pa: # going backwards?
+                repo.ui.debug(_("local deleted %s, recreating\n") % f)
+                get[f] = n
+            else:
+                repo.ui.debug(_("local deleted %s\n") % f)
+
+    del mw, m1, m2, ma
+
+    if force:
+        for f in merge:
+            get[f] = merge[f][1]
+        merge = {}
+
+    if linear_path or force:
+        # we don't need to do any magic, just jump to the new rev
+        branch_merge = False
+        p1, p2 = p2, nullid
+    else:
+        if not allow:
+            repo.ui.status(_("this update spans a branch"
+                             " affecting the following files:\n"))
+            fl = merge.keys() + get.keys()
+            fl.sort()
+            for f in fl:
+                cf = ""
+                if f in merge:
+                    cf = _(" (resolve)")
+                repo.ui.status(" %s%s\n" % (f, cf))
+            repo.ui.warn(_("aborting update spanning branches!\n"))
+            repo.ui.status(_("(use 'hg merge' to merge across branches"
+                             " or 'hg update -C' to lose changes)\n"))
+            return 1
+        branch_merge = True
+
+    xp1 = hex(p1)
+    xp2 = hex(p2)
+    if p2 == nullid: xxp2 = ''
+    else: xxp2 = xp2
+
+    repo.hook('preupdate', throw=True, parent1=xp1, parent2=xxp2)
+
+    # get the files we don't need to change
+    files = get.keys()
+    files.sort()
+    for f in files:
+        if f[0] == "/":
+            continue
+        repo.ui.note(_("getting %s\n") % f)
+        t = repo.file(f).read(get[f])
+        repo.wwrite(f, t)
+        util.set_exec(repo.wjoin(f), mf2[f])
+        if moddirstate:
+            if branch_merge:
+                repo.dirstate.update([f], 'n', st_mtime=-1)
+            else:
+                repo.dirstate.update([f], 'n')
+
+    # merge the tricky bits
+    failedmerge = []
+    files = merge.keys()
+    files.sort()
+    for f in files:
+        repo.ui.status(_("merging %s\n") % f)
+        my, other, flag = merge[f]
+        ret = merge3(repo, f, my, other, xp1, xp2)
+        if ret:
+            err = True
+            failedmerge.append(f)
+        util.set_exec(repo.wjoin(f), flag)
+        if moddirstate:
+            if branch_merge:
+                # We've done a branch merge, mark this file as merged
+                # so that we properly record the merger later
+                repo.dirstate.update([f], 'm')
+            else:
+                # We've update-merged a locally modified file, so
+                # we set the dirstate to emulate a normal checkout
+                # of that file some time in the past. Thus our
+                # merge will appear as a normal local file
+                # modification.
+                f_len = len(repo.file(f).read(other))
+                repo.dirstate.update([f], 'n', st_size=f_len, st_mtime=-1)
+
+    remove.sort()
+    for f in remove:
+        repo.ui.note(_("removing %s\n") % f)
+        util.audit_path(f)
+        try:
+            util.unlink(repo.wjoin(f))
+        except OSError, inst:
+            if inst.errno != errno.ENOENT:
+                repo.ui.warn(_("update failed to remove %s: %s!\n") %
+                             (f, inst.strerror))
+    if moddirstate:
+        if branch_merge:
+            repo.dirstate.update(remove, 'r')
+        else:
+            repo.dirstate.forget(remove)
+
+    if moddirstate:
+        repo.dirstate.setparents(p1, p2)
+
+    if show_stats:
+        stats = ((len(get), _("updated")),
+                 (len(merge) - len(failedmerge), _("merged")),
+                 (len(remove), _("removed")),
+                 (len(failedmerge), _("unresolved")))
+        note = ", ".join([_("%d files %s") % s for s in stats])
+        repo.ui.status("%s\n" % note)
+    if moddirstate:
+        if branch_merge:
+            if failedmerge:
+                repo.ui.status(_("There are unresolved merges,"
+                                " you can redo the full merge using:\n"
+                                "  hg update -C %s\n"
+                                "  hg merge %s\n"
+                                % (repo.changelog.rev(p1),
+                                    repo.changelog.rev(p2))))
+            else:
+                repo.ui.status(_("(branch merge, don't forget to commit)\n"))
+        elif failedmerge:
+            repo.ui.status(_("There are unresolved merges with"
+                             " locally modified files.\n"))
+
+    repo.hook('update', parent1=xp1, parent2=xxp2, error=int(err))
+    return err
+