--- a/mercurial/hgweb/server.py
+++ b/mercurial/hgweb/server.py
@@ -216,14 +216,10 @@ def create_server(ui, repo):
                 return hgwebobj
             self.reqmaker = wsgiapplication(make_handler)
 
-            addr, port = self.socket.getsockname()[:2]
-            if addr in ('0.0.0.0', '::'):
+            addr = address
+            if addr in ('', '::'):
                 addr = socket.gethostname()
-            else:
-                try:
-                    addr = socket.gethostbyaddr(addr)[0]
-                except socket.error:
-                    pass
+
             self.addr, self.port = addr, port
 
     class IPv6HTTPServer(MercurialHTTPServer):

--- a/mercurial/localrepo.py
+++ b/mercurial/localrepo.py
@@ -810,6 +810,8 @@ class localrepository(repo.repository):
             if f in m1:
                 del m1[f]
                 removed.append(f)
+            elif f in m2:
+                removed.append(f)
         mn = self.manifest.add(m1, tr, linkrev, c1[0], c2[0], (new, removed))
 
         # add changeset

new file mode 100755
--- /dev/null
+++ b/tests/test-586
@@ -0,0 +1,19 @@
+#!/bin/sh
+# a test for issue586
+
+hg init a
+cd a
+echo a > a
+hg ci -Ama
+
+hg init ../b
+cd ../b
+echo b > b
+hg ci -Amb
+
+hg pull -f ../a
+hg merge
+hg rm -f a
+hg ci -Amc
+
+hg st -A

new file mode 100644
--- /dev/null
+++ b/tests/test-586.out
@@ -0,0 +1,13 @@
+adding a
+adding b
+pulling from ../a
+searching for changes
+warning: repository is unrelated
+adding changesets
+adding manifests
+adding file changes
+added 1 changesets with 1 changes to 1 files (+1 heads)
+(run 'hg heads' to see heads, 'hg merge' to merge)
+1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+(branch merge, don't forget to commit)
+C b