The system wide setting of PAGER is ignored by etc-update and dispatch-conf. Instead, the pager is set by private config variables "pager" and "diff", respectively. Suggestion (for etc-update, similar for dispatch-conf): 1. Use "pager" from etc-update.conf, if it is set. The default etc-update.conf that is shipped with portage should _not_ set this variable, though. 2. Fall back to ${PAGER}. 3. Fall back to cat. Also, sys-apps/less should be removed from Portage's PDEPEND.
*** Bug 384573 has been marked as a duplicate of this bug. ***
This is fixed in git: http://git.overlays.gentoo.org/gitweb/?p=proj/portage.git;a=commit;h=374aa37ece5d67d003da358e35f0326da3cd2397 http://git.overlays.gentoo.org/gitweb/?p=proj/portage.git;a=commit;h=3be910392f1186cacf0796e952fb5dae38b10f57
This is fixed in 2.1.10.20 and 2.2.0_alpha60.