diff -r 077f1e637cd8 -r 11229144aa01 mercurial/util.py
--- a/mercurial/util.py	Sun Aug 10 18:38:43 2008 -0500
+++ b/mercurial/util.py	Tue Aug 12 17:47:08 2008 +0200
@@ -1069,7 +1069,7 @@
         '''return False if pid dead, True if running or not known'''
         return True
 
-    def set_flags(f, flags):
+    def set_flags(f, l, x):
         pass
 
     def set_binary(fd):
@@ -1216,16 +1216,18 @@
         """check whether a file is executable"""
         return (os.lstat(f).st_mode & 0100 != 0)
 
-    def set_flags(f, flags):
+    def set_flags(f, l, x):
         s = os.lstat(f).st_mode
-        x = "x" in flags
-        l = "l" in flags
         if l:
             if not stat.S_ISLNK(s):
                 # switch file to link
                 data = file(f).read()
                 os.unlink(f)
-                os.symlink(data, f)
+                try:
+                    os.symlink(data, f)
+                except:
+                    # failed to make a link, rewrite file
+                    file(f, "w").write(data)
             # no chmod needed at this point
             return
         if stat.S_ISLNK(s):