diff -r cef68b50078c -r e592180ba435 mercurial/merge.py
--- a/mercurial/merge.py	Mon Jun 08 18:14:44 2009 -0500
+++ b/mercurial/merge.py	Mon Jun 08 18:14:44 2009 -0500
@@ -247,15 +247,14 @@
             else: # case 3,20 A/B/A
                 act("remote moved to " + f, "m",
                     f2, f, f, fmerge(f2, f, f2), True)
-        elif f in ma:
-            if n != ma[f]:
-                if repo.ui.prompt(
-                    _("remote changed %s which local deleted\n"
-                      "use (c)hanged version or leave (d)eleted?") % f,
-                    (_("&Changed"), _("&Deleted")), _("c")) == _("c"):
-                    act("prompt recreating", "g", f, m2.flags(f))
-        else:
+        elif f not in ma:
             act("remote created", "g", f, m2.flags(f))
+        elif n != ma[f]:
+            if repo.ui.prompt(
+                _("remote changed %s which local deleted\n"
+                  "use (c)hanged version or leave (d)eleted?") % f,
+                (_("&Changed"), _("&Deleted")), _("c")) == _("c"):
+                act("prompt recreating", "g", f, m2.flags(f))
 
     return action