Index: subversion/libsvn_client/diff.c
===================================================================
--- subversion/libsvn_client/diff.c	(revision 23830)
+++ subversion/libsvn_client/diff.c	(working copy)
@@ -1799,8 +1799,6 @@
   const char *walk_path = "";
   apr_hash_t *wc_mergeinfo;
 
-  SVN_ERR(svn_path_get_absolute(&wcpath, wcpath, pool));
-
   while (TRUE)
     {
       /* Look for merge info on WCPATH.  If there isn't any, walk
@@ -1810,6 +1808,12 @@
       SVN_ERR(svn_client__parse_merge_info(&wc_mergeinfo, entry, wcpath,
                                            adm_access, ctx, pool));
 
+      /* Subsequent svn_wc_adm_access_t need to be opened with
+         an absolute path so we can walk up and out of the WC
+         if necessary. */
+      if (!svn_path_is_absolute(wcpath, strlen(wcpath)))
+        SVN_ERR(svn_path_get_absolute(&wcpath, wcpath, pool));
+
       if (apr_hash_count(wc_mergeinfo) == 0 &&
           !svn_path_is_root(wcpath, strlen(wcpath)))
         {
@@ -2573,14 +2577,14 @@
                            apr_hash_t **props,
                            svn_revnum_t rev,
                            const char *url,
-                           struct merge_cmd_baton *merge_b,
+                           const char *wc_target,
                            apr_pool_t *pool)
 {
   apr_file_t *fp;
   svn_stream_t *stream;
 
   SVN_ERR(svn_io_open_unique_file2(&fp, filename,
-                                   merge_b->target, ".tmp",
+                                   wc_target, ".tmp",
                                    svn_io_file_del_none, pool));
   stream = svn_stream_from_aprfile2(fp, FALSE, pool);
   SVN_ERR(svn_ra_get_file(ra_session, "", rev,
@@ -2739,11 +2743,11 @@
          fetching two fulltexts from two different repositories here. */
       SVN_ERR(single_file_merge_get_file(&tmpfile1, ra_session1, &props1, 
                                          is_revert ? r->start : r->start - 1, 
-                                         URL1, merge_b, pool));
+                                         URL1, target_wcpath, pool));
 
       SVN_ERR(single_file_merge_get_file(&tmpfile2, ra_session2, &props2, 
                                          is_revert ? r->end - 1 : r->end, 
-                                         URL2, merge_b, pool));
+                                         URL2, target_wcpath, pool));
 
       /* Discover any svn:mime-type values in the proplists */
       pval = apr_hash_get(props1, SVN_PROP_MIME_TYPE,
@@ -2759,7 +2763,7 @@
 
       SVN_ERR(merge_file_changed(adm_access,
                                  &text_state, &prop_state,
-                                 merge_b->target,
+                                 target_wcpath,
                                  tmpfile1,
                                  tmpfile2,
                                  is_revert ? r->start : r->start - 1, 
@@ -2780,7 +2784,7 @@
   
         {
           svn_wc_notify_t *notify
-          = svn_wc_create_notify(merge_b->target, svn_wc_notify_update_update,
+          = svn_wc_create_notify(target_wcpath, svn_wc_notify_update_update,
                                  pool);
           notify->kind = svn_node_file;
           notify->content_state = text_state;
Index: subversion/tests/cmdline/merge_tests.py
===================================================================
--- subversion/tests/cmdline/merge_tests.py	(revision 23830)
+++ subversion/tests/cmdline/merge_tests.py	(working copy)
@@ -306,7 +306,6 @@
     'tau'   : wc.StateItem("This is the file 'tau'.\n"),
     })
   expected_disk.tweak('rho',
-                      props={SVN_PROP_MERGE_INFO : '/A/D/G/rho:2-3'},
                       contents=other_rho_text
                       + expected_disk.desc['rho'].contents
                       + rho_text
@@ -324,15 +323,15 @@
                       )
 
   expected_status = wc.State(os.path.join(other_wc, 'A', 'D', 'G'),
-                             { ''     : Item(wc_rev=1, status=' M'),
-                               'rho'  : Item(wc_rev=1, status='G '),
-                               'pi'   : Item(wc_rev=1, status='G '),
+                             { ''     : Item(wc_rev=1, status='  '),
+                               'rho'  : Item(wc_rev=1, status='MM'),
+                               'pi'   : Item(wc_rev=1, status='M '),
                                'tau'  : Item(wc_rev=1, status='C '),
                                })
-  expected_status.tweak('pi', status='M ')
-  expected_status.tweak('rho', status='MM')
-  expected_status.tweak('tau', status='C ')
 
+  # Do the merge, but check svn:mergeinfo props separately since
+  # run_and_verify_merge would attempt to proplist tau's conflict
+  # files if we asked it to check props.
   svntest.actions.run_and_verify_merge(
     os.path.join(other_wc, 'A', 'D', 'G'),
     '2', '3',
@@ -343,6 +342,10 @@
     expected_skip,
     None, merge_singleton_handler)
     
+  svntest.actions.run_and_verify_svn(None, ["/A/D/G/rho:2-3\n"], [],
+                                     'propget', SVN_PROP_MERGE_INFO,
+                                     os.path.join(other_wc,
+                                                  "A", "D", "G", "rho"))
 
 
 #----------------------------------------------------------------------
@@ -4491,7 +4494,25 @@
   # this file, to understand why we shorten and chdir() below.
   short_copy_of_A_D_path = shorten_path_kludge(copy_of_A_D_path)
 
+  # We still need to determine how we will handle notification
+  # callbacks for multiple merges into a single versioned resource.
+  # Currently every merge range applied to a target is reported
+  # separately...but eventually we'll probably change the expected
+  # output.
   expected_output = wc.State(short_copy_of_A_D_path, {
+    'G/pi'    : Item(status='G '),
+    'G/rho'   : Item(status='G '),
+    'G/rho'   : Item(status='G '),
+    'G/tau'   : Item(status='G '),
+    'G/tau'   : Item(status='G '),
+    'H/chi'   : Item(status='G '),
+    'H/chi'   : Item(status='G '),
+    'H/omega' : Item(status='G '),
+    'H/omega' : Item(status='G '),
+    'H/psi'   : Item(status='G '),
+    'H/psi'   : Item(status='G '),
+    'gamma'   : Item(status='G '),
+    'gamma'   : Item(status='G '),
     'umlaut'  : Item(status='A '),
     })
 
@@ -4950,7 +4971,7 @@
 
 # list all tests here, starting with None:
 test_list = [ None,
-              XFail(textual_merges_galore),
+              textual_merges_galore,
               add_with_history,
               delete_file_and_dir,
               simple_property_merges,