Initializing a colocated workspace complains "Directory not empty"

[Luis Arias]

I'm running bzr-explorer rev 466 and getting the following message when initializing a colocated workspace.

Run command: bzr new --colocated-branches --format 2a /home/luis/workspace/test-switch-and-create
Created repository with treeless branches at /home/luis/workspace/test-switch-and-create/.bzr/branches
Created branch at /home/luis/workspace/test-switch-and-create/.bzr/branches/trunk
bzr: ERROR: [Errno 39] Directory not empty: '/home/luis/workspace/test-switch-and-create/.bzr-tmp'

[Alexander Belchenko (bialix)]

I can't reproduce this problem.