diff -r 2dcc3653b361 -r 14e31a631e41 hgext/largefiles/overrides.py
--- a/hgext/largefiles/overrides.py	Fri Dec 28 11:55:57 2012 +0100
+++ b/hgext/largefiles/overrides.py	Thu Dec 13 19:19:06 2012 +0100
@@ -755,7 +755,7 @@
         # .hg/largefiles, and the standin matcher won't match anything anyway.)
         if 'largefiles' in repo.requirements:
             if opts.get('noupdate'):
-                util.makedirs(repo.pathto(lfutil.shortname))
+                util.makedirs(repo.wjoin(lfutil.shortname))
                 util.makedirs(repo.join(lfutil.longname))
 
         # Caching is implicitly limited to 'rev' option, since the dest repo was