diff --git a/bin/emerge b/bin/emerge
index 6e33f00..f1b875f 100755
--- a/bin/emerge
+++ b/bin/emerge
@@ -707,7 +707,7 @@ class depgraph:
 			    If the package has new iuse flags or different use flags then if
 			    --newuse is specified, we need to merge the package. """
 			if merging==0 and "--newuse" in self.myopts and \
-				vardbapi.cpv_exists(mykey):
+				mytype != "installed" and vardbapi.cpv_exists(mykey):
 				old_use = vardbapi.aux_get(mykey, ["USE"])[0].split()
 				if mytype == "binary":
 					iuses = bindb.aux_get(mykey, ["IUSE"])[0].split()
@@ -764,6 +764,12 @@ class depgraph:
 				edepend["RDEPEND"]=string.join(mytbz2.getelements("RDEPEND")," ")
 				edepend["PDEPEND"]=string.join(mytbz2.getelements("PDEPEND")," ")
 				edepend["SLOT"]   =mytbz2.getfile("SLOT",mypkgparts[2])
+		elif mytype == "installed":
+			myfoo = self.trees[myroot]["vartree"].dbapi.aux_get(
+				mykey, ["RDEPEND","PDEPEND"])
+			edepend["DEPEND"]  = ""
+			edepend["RDEPEND"] = myfoo[0]
+			edepend["PDEPEND"] = myfoo[1]
 		elif mytype=="ebuild":
 			try:
 				mymeta = ["DEPEND","RDEPEND","PDEPEND"]
@@ -965,6 +971,7 @@ class depgraph:
 
 		portdb = self.trees[myroot]["porttree"].dbapi
 		bindb  = self.trees[myroot]["bintree"].dbapi
+		vartree = self.trees[myroot]["vartree"]
 		pkgsettings = self.pkgsettings[myroot]
 
 		if "--debug" in self.myopts:
@@ -1048,12 +1055,32 @@ class depgraph:
 					old_use = bindb.aux_get(myeb_pkg, ["USE"])[0].split()
 					pkgsettings.setcpv(myeb_pkg)
 					now_use = pkgsettings["USE"].split()
-					for x in iuses:
-						if (old_use.count(x) and not now_use.count(x)) or (not old_use.count(x) and now_use.count(x)):
+					for useflag in iuses:
+						if (old_use.count(useflag) and \
+							not now_use.count(useflag)) or \
+							(not old_use.count(useflag) and \
+							now_use.count(useflag)):
 							myeb_pkg = None
 							break
 
-				if (not myeb) and (not myeb_pkg):
+				myeb_inst = None
+				if not arg:
+					myeb_inst = portage.best(vartree.dbapi.match(x))
+					if myeb_inst and "--newuse" in self.myopts:
+						iuses, old_use = \
+							vartree.dbapi.aux_get(myeb_inst, ["IUSE","USE"])
+						iuses = iuses.split()
+						old_use = old_use.split()
+						now_use = pkgsettings["USE"].split()
+						for useflag in iuses:
+							if (old_use.count(useflag) and \
+								not now_use.count(useflag)) or \
+								(not old_use.count(useflag) and \
+								now_use.count(useflag)):
+								myeb_inst = None
+								break
+
+				if (not myeb_inst) and (not myeb) and (not myeb_pkg):
 					if raise_on_missing:
 						raise ValueError
 					if not arg:
@@ -1105,7 +1132,30 @@ class depgraph:
 					else:
 						myeb_pkg = None
 
-				if myeb:
+				def cpvpkgsplit(cpv):
+					mysplit = portage.catpkgsplit(cpv)
+					return [mysplit[0] + "/" + mysplit[1],
+						mysplit[2], mysplit[3]]
+
+				if myeb_inst and (myeb or myeb_pkg):
+					if myeb:
+						if portage.pkgcmp(
+							cpvpkgsplit(myeb), cpvpkgsplit(myeb_inst)) > 0:
+							myeb_inst = None
+						else:
+							myeb = None
+					else:
+						if portage.pkgcmp(
+							cpvpkgsplit(myeb_pkg), cpvpkgsplit(myeb_inst)) > 0:
+							myeb_inst = None
+						else:
+							myeb_pkg = None
+
+				if myeb_inst:
+					binpkguseflags = \
+						vartree.dbapi.aux_get(myeb_inst, ["USE"])[0].split()
+					myk = ["installed", myroot, myeb_inst]
+				elif myeb:
 					myk=["ebuild",myroot,myeb]
 				elif myeb_pkg:
 					binpkguseflags = \