Also, if you try the same command when using a smart server you get an error like "bzr://localhost/testrepo/branch/.bzr/ is not a local path". So it does look like it's misinterpreting the arguments somehow. Very strange...
Also, if you try the same command when using a smart server you get an error like "bzr:// localhost/ testrepo/ branch/ .bzr/ is not a local path". So it does look like it's misinterpreting the arguments somehow. Very strange...