The result is that lots of files don't get installed! One such file is the /etc/env.d file, which means that once the /etc/ld.so.conf file is regenerated via env-update, no X programs will work anymore! **all** insinto (and friends) should be wrapped in || die to prevent this from happening! Please produce an xfree-4.2.0-r13 that fixes this problem, as any -r12 packages that are built (like mine) will be *wrong*.
This is a special kind of user error. I forgot I was using CVS and I **have** to use '-d' option in update. Grr!