--- portage-2.2_rc43/pym/portage/update.py.orig	2009-09-25 06:29:54.000000000 +0300
+++ portage-2.2_rc43/pym/portage/update.py	2009-12-05 11:38:46.000000000 +0200
@@ -185,45 +185,53 @@
 	protect_mask - list of paths from CONFIG_PROTECT_MASK
 	update_iter - list of update commands as returned from parse_updates()"""
 
-	config_root = normalize_path(config_root)
+	def decodeFS(y):
+		return (_unicode_decode(y, encoding=_encodings['fs'], errors='strict'))
+
+	def encodeFS(x):
+		return (_unicode_encode(x, encoding=_encodings['fs'], errors='strict'))
+
+	# os.path.* and normalize_path works with fs-encoded
+	# so combine only fs-encoded pathnames
+	config_root = normalize_path(encodeFS(config_root))
 	update_files = {}
 	file_contents = {}
 	myxfiles = ["package.mask", "package.unmask", \
 		"package.keywords", "package.use"]
 	myxfiles += [os.path.join("profile", x) for x in myxfiles]
-	abs_user_config = os.path.join(config_root, USER_CONFIG_PATH)
-	recursivefiles = []
+	myxfiles = [encodeFS(x) for x in myxfiles]
+	abs_user_config = os.path.join(config_root, encodeFS(USER_CONFIG_PATH))
+	recursivefiles = [] # pairs of (bytes, string)
 	for x in myxfiles:
 		config_file = os.path.join(abs_user_config, x)
 		if os.path.isdir(config_file):
 			for parent, dirs, files in os.walk(config_file):
 				for y in dirs:
+					# do not descent to hidden folders or those with wrong name encoding
 					try:
-						y = _unicode_decode(y,
-							encoding=_encodings['fs'], errors='strict')
+						y_decoded = decodeFS(y)
 					except UnicodeDecodeError:
 						dirs.remove(y)
 						continue
-					if y.startswith("."):
+					if y_decoded.startswith("."):
 						dirs.remove(y)
 				for y in files:
+					# add only visible files with right name encoding 
 					try:
-						y = _unicode_decode(y,
-							encoding=_encodings['fs'], errors='strict')
+						y_decoded = decodeFS(y)
 					except UnicodeDecodeError:
 						continue
-					if y.startswith("."):
+					if y_decoded.startswith("."):
 						continue
-					recursivefiles.append(
-						os.path.join(parent, y)[len(abs_user_config) + 1:])
+					y = os.path.join(parent, y)[len(abs_user_config) + 1:]
+					recursivefiles.append((y, decodeFS(y)))
 		else:
-			recursivefiles.append(x)
+			recursivefiles.append((x, decodeFS(x)))
 	myxfiles = recursivefiles
-	for x in myxfiles:
+	for (x, y) in myxfiles:
 		try:
-			file_contents[x] = codecs.open(
-				_unicode_encode(os.path.join(abs_user_config, x),
-				encoding=_encodings['fs'], errors='strict'),
+			file_contents[y] = codecs.open(
+				os.path.join(abs_user_config, x),
 				mode='r', encoding=_encodings['content'],
 				errors='replace').readlines()
 		except IOError: