Added tests for local and remote init.
This tests the changes done in edb66cb05ded and b898afee9d0d.
%% no changes
%% no changes
%% uncompressed contents in repo
this is a test
%% uncompress our working dir copy
this is a test
1 files updated, 0 files merged, 0 files removed, 0 files unresolved
%% uncompress our new working dir copy
this is a test