diff -r 62c9183a0bbb -r e89385e4ef8d hgext/largefiles/lfutil.py
--- a/hgext/largefiles/lfutil.py	Tue Nov 22 12:06:42 2011 -0600
+++ b/hgext/largefiles/lfutil.py	Tue Nov 22 19:52:23 2011 +0100
@@ -156,7 +156,7 @@
             hash = readstandin(repo, lfile)
             lfdirstate.normallookup(lfile)
             try:
-                if hash == hashfile(lfile):
+                if hash == hashfile(repo.wjoin(lfile)):
                     lfdirstate.normal(lfile)
             except OSError, err:
                 if err.errno != errno.ENOENT: