Oops, somehow deleted the bug descripton when I submitted the bug. Last week a user reported on the mailing list that creating new files will fail the the writable branch doesn't have the directory path. So clearly a copy-on-write bug. I already submitted patch to the upstream repository:
http://hg.podgorny.cz/unionfs-fuse/rev/2be23aea75a0 -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]