Index: subversion/tests/cmdline/update_tests.py
===================================================================
--- subversion/tests/cmdline/update_tests.py  (revision 20467)
+++ subversion/tests/cmdline/update_tests.py  (working copy)
@@ -1674,6 +1674,12 @@
                                           expected_output,
                                           expected_wc)
 
+# This test validates three scenario's:
+# 1: when update creates a conflict on a file, make sure the file and files 
+#    r<left>, r<right> and .mine are in the eol-style defined for that file.
+# 2: if part of that update is a propchange of svn:eol-style, make sure the 
+#    new eol-style is used for all files
+# 3: if svn:eol-style is changed locally, use the new eol-style for all files.
 def conflict_markers_matching_eol(sbox):
   "conflict markers should match the file's eol style"
 
@@ -1688,7 +1694,7 @@
   else:
     crlf = '\r\n'
 
-  # Checkout a second working copy of
+  # Checkout a second working copy
   wc_backup = sbox.add_wc_path('backup')
   svntest.actions.run_and_verify_svn(None, None, [], 'checkout', sbox.repo_url, wc_backup)
 
@@ -1701,13 +1707,13 @@
 
   path_backup = os.path.join(wc_backup, 'A', 'mu')
 
-  # do the test for each eol-style
-  for eol, eolchar in zip(['CRLF', 'CR', 'native', 'LF'],
-                          [crlf, '\015', '\n', '\012']):
-    # add a new file with the eol-style property set.
-    open(mu_path, 'wb').write("This is the file 'mu'."+ eolchar)
-    svntest.main.run_svn(None, 'propset', 'svn:eol-style', eol, mu_path)
-
+  # Do the test for each eol-style. First try scenario 1, don't set the 
+  # svn:eol-style property.
+  for eol, eolchar in zip([None, 'CRLF', 'CR', 'native', 'LF'],
+                          ['\012', crlf, '\015', '\n', '\012']):
+    open(mu_path, 'wb').write("This is the changed file 'mu'."+ eolchar)
+    print 'eol: ' + str(eol)
+    
     expected_disk.add({
       'A/mu' : Item("This is the file 'mu'." + eolchar)
     })
@@ -1727,9 +1733,15 @@
     base_rev = cur_rev
 
     svntest.main.run_svn(None, 'update', wc_backup)
-
+    
+    # set the eol-style property (to test scenario 2).
+    if eol:
+      svntest.main.run_svn(None, 'propset', 'svn:eol-style', eol, mu_path)
+      svntest.main.run_svn(None, 'commit', '-m', 'set property', wc_dir)
+      
     # Make a local mod to mu
-    svntest.main.file_append(mu_path, 'Original appended text for mu' + eolchar)
+    svntest.main.file_append(mu_path, 'Original appended text for mu' + 
+                             eolchar)
 
     # Commit the original change and note the 'theirs' revision number 
     svntest.main.run_svn(None, 'commit', '-m', 'test log', wc_dir)
@@ -1741,8 +1753,13 @@
                               'Conflicting appended text for mu' + eolchar)
 
     # Create expected output tree for an update of the wc_backup.
+
+    if eol:  # if we set the svn:eol-style property, status will be U as well.
+      exp_status = 'CU'
+    else:
+      exp_status = 'C '
     expected_backup_output = svntest.wc.State(wc_backup, {
-      'A/mu' : Item(status='C '),
+      'A/mu' : Item(status=exp_status),
       })
 
     # Create expected disk tree for the update.
@@ -1750,7 +1767,7 @@
 
     # verify content of resulting conflicted file
     expected_backup_disk.add({
-    'A/mu' : Item(contents= "This is the file 'mu'." + eolchar +
+    'A/mu' : Item(contents= "This is the changed file 'mu'." + eolchar +
       "<<<<<<< .mine" + eolchar +
       "Conflicting appended text for mu" + eolchar +
       "=======" + eolchar +
@@ -1759,18 +1776,18 @@
     })
     # verify content of base(left) file
     expected_backup_disk.add({
-    'A/mu.r' + str(base_rev ) : Item(contents= "This is the file 'mu'." +
+    'A/mu.r' + str(base_rev ) : Item(contents= "This is the changed file 'mu'." +
       eolchar)
     })
     # verify content of theirs(right) file
     expected_backup_disk.add({
-    'A/mu.r' + str(theirs_rev ) : Item(contents= "This is the file 'mu'." +
+    'A/mu.r' + str(theirs_rev ) : Item(contents= "This is the changed file 'mu'." +
       eolchar +
       "Original appended text for mu" + eolchar)
     })
     # verify content of mine file
     expected_backup_disk.add({
-    'A/mu.mine' : Item(contents= "This is the file 'mu'." +
+    'A/mu.mine' : Item(contents= "This is the changed file 'mu'." +
       eolchar +
       "Conflicting appended text for mu" + eolchar)
     })