Index: subversion/tests/cmdline/svntest/tree.py
===================================================================
--- subversion/tests/cmdline/svntest/tree.py	(revision 32668)
+++ subversion/tests/cmdline/svntest/tree.py	(working copy)
@@ -457,8 +457,8 @@
     else:
       dprops = {}
     new_dir_node = SVNTreeNode(os.path.basename(d), None, None, dprops)
+    current_parent.add_child(new_dir_node)
     handle_dir(d, new_dir_node, load_props, ignore_svn)
-    current_parent.add_child(new_dir_node)
 
 def get_child(node, name):
   """If SVNTreeNode NODE contains a child named NAME, return child;
Index: subversion/tests/cmdline/update_tests.py
===================================================================
--- subversion/tests/cmdline/update_tests.py	(revision 32668)
+++ subversion/tests/cmdline/update_tests.py	(working copy)
@@ -64,7 +64,16 @@
       if contents is None:
         return
       else:
-        real_contents = svntest.main.file_read(os.path.join(wc_dir, node.path))
+        # Strip the root_node_name from node path
+        # (svntest.tree.root_node_name, currently `__SVN_ROOT_NODE'),
+        # since it doesn't really exist. Also strip the trailing "slash".
+        real_path = node.path
+        if real_path.startswith(svntest.tree.root_node_name):
+          real_path = real_path[len(svntest.tree.root_node_name) +
+                                len(os.sep) :]
+        real_path = os.path.join(wc_dir, real_path)
+
+        real_contents = svntest.main.file_read(real_path)
         if real_contents == contents:
           extra_files.pop(extra_files.index(fdata)) # delete pattern from list
           return