diff -r c3aedd526d53 -r c9c8c9053119 mercurial/subrepo.py
--- a/mercurial/subrepo.py	Fri Apr 13 15:07:13 2012 +0200
+++ b/mercurial/subrepo.py	Mon Apr 16 11:48:15 2012 +0200
@@ -740,12 +740,21 @@
         return True
 
     def files(self):
-        output = self._svncommand(['list'])
-        # This works because svn forbids \n in filenames.
-        return output.splitlines()
+        output = self._svncommand(['list', '--recursive', '--xml'])[0]
+        doc = xml.dom.minidom.parseString(output)
+        paths = []
+        for e in doc.getElementsByTagName('entry'):
+            kind = str(e.getAttribute('kind'))
+            if kind != 'file':
+                continue
+            name = ''.join(c.data for c
+                           in e.getElementsByTagName('name')[0].childNodes
+                           if c.nodeType == c.TEXT_NODE)
+            paths.append(name)
+        return paths
 
     def filedata(self, name):
-        return self._svncommand(['cat'], name)
+        return self._svncommand(['cat'], name)[0]
 
 
 class gitsubrepo(abstractsubrepo):