diff -r 82f840109f76 -r 9e7e24052745 mercurial/merge.py
--- a/mercurial/merge.py	Wed Dec 08 22:14:18 2010 -0600
+++ b/mercurial/merge.py	Tue Dec 07 03:29:21 2010 +0100
@@ -524,7 +524,7 @@
         action += manifestmerge(repo, wc, p2, pa, overwrite, partial)
 
         ### apply phase
-        if not branchmerge: # just jump to the new rev
+        if not branchmerge or fastforward: # just jump to the new rev
             fp1, fp2, xp1, xp2 = fp2, nullid, xp2, ''
         if not partial:
             repo.hook('preupdate', throw=True, parent1=xp1, parent2=xp2)
@@ -533,7 +533,7 @@
 
         if not partial:
             repo.dirstate.setparents(fp1, fp2)
-            recordupdates(repo, action, branchmerge)
+            recordupdates(repo, action, branchmerge and not fastforward)
             if not branchmerge and not fastforward:
                 repo.dirstate.setbranch(p2.branch())
     finally: