Comment 3 for bug 691756

Here's a repro script doing it all in one dir for convenience:

#!/bin/sh -x
bzr="/usr/local/bin/bzr --no-plugins --no-aliases"

${bzr} init A
(
 # Setup
 cd A ;
 mkdir a ;
 touch a/b ;
 ${bzr} add ;
 ${bzr} ci -m 1 ;

 # Add a rev changing the file
 echo whee > a/b ;
 ${bzr} ci -m 2 ;

 # Back up to before the change
 ${bzr} up -r 1

 # Turn the dir into a symlink
 rm -rf a ;
 ln -s /etc a ;

 # Try to update back across the change to a/b
 bzr up
 # *boom*
)