diff --git a/git-status.sh b/git-status.sh
index ca9a15459fc..44398d760c4 100755
--- a/git-status.sh
+++ b/git-status.sh
@@ -37,7 +37,7 @@ refs/heads/master) ;;
 *)	echo "# On branch $branch" ;;
 esac
 
-git-update-index --refresh >/dev/null 2>&1
+git-update-index -q --unmerged --refresh || exit
 
 if GIT_DIR="$GIT_DIR" git-rev-parse --verify HEAD >/dev/null 2>&1
 then
diff --git a/read-cache.c b/read-cache.c
index 0e345bdb2fa..d2aebdd6bc6 100644
--- a/read-cache.c
+++ b/read-cache.c
@@ -464,11 +464,15 @@ int read_cache(void)
 
 	errno = EBUSY;
 	if (active_cache)
-		return error("more than one cachefile");
+		return active_nr;
+
 	errno = ENOENT;
 	fd = open(get_index_file(), O_RDONLY);
-	if (fd < 0)
-		return (errno == ENOENT) ? 0 : error("open failed");
+	if (fd < 0) {
+		if (errno == ENOENT)
+			return 0;
+		die("index file open failed (%s)", strerror(errno));
+	}
 
 	size = 0; // avoid gcc warning
 	map = MAP_FAILED;
@@ -480,7 +484,7 @@ int read_cache(void)
 	}
 	close(fd);
 	if (map == MAP_FAILED)
-		return error("mmap failed");
+		die("index file mmap failed (%s)", strerror(errno));
 
 	hdr = map;
 	if (verify_hdr(hdr, size) < 0)
@@ -501,7 +505,7 @@ int read_cache(void)
 unmap:
 	munmap(map, size);
 	errno = EINVAL;
-	return error("verify header failed");
+	die("index file corrupt");
 }
 
 #define WRITE_BUFFER_SIZE 8192
diff --git a/update-index.c b/update-index.c
index 01eaa1a984c..ade1ee72ebb 100644
--- a/update-index.c
+++ b/update-index.c
@@ -13,7 +13,7 @@
  * like "git-update-index *" and suddenly having all the object
  * files be revision controlled.
  */
-static int allow_add = 0, allow_remove = 0, allow_replace = 0, not_new = 0, quiet = 0, info_only = 0;
+static int allow_add = 0, allow_remove = 0, allow_replace = 0, allow_unmerged = 0, not_new = 0, quiet = 0, info_only = 0;
 static int force_remove;
 
 /* Three functions to allow overloaded pointer return; see linux/err.h */
@@ -135,7 +135,7 @@ static struct cache_entry *refresh_entry(struct cache_entry *ce)
 
 	changed = ce_match_stat(ce, &st);
 	if (!changed)
-		return ce;
+		return NULL;
 
 	if (ce_modified(ce, &st))
 		return ERR_PTR(-EINVAL);
@@ -156,16 +156,20 @@ static int refresh_cache(void)
 		struct cache_entry *ce, *new;
 		ce = active_cache[i];
 		if (ce_stage(ce)) {
-			printf("%s: needs merge\n", ce->name);
-			has_errors = 1;
 			while ((i < active_nr) &&
 			       ! strcmp(active_cache[i]->name, ce->name))
 				i++;
 			i--;
+			if (allow_unmerged)
+				continue;
+			printf("%s: needs merge\n", ce->name);
+			has_errors = 1;
 			continue;
 		}
 
 		new = refresh_entry(ce);
+		if (!new)
+			continue;
 		if (IS_ERR(new)) {
 			if (not_new && PTR_ERR(new) == -ENOENT)
 				continue;
@@ -335,6 +339,10 @@ int main(int argc, const char **argv)
 				allow_remove = 1;
 				continue;
 			}
+			if (!strcmp(path, "--unmerged")) {
+				allow_unmerged = 1;
+				continue;
+			}
 			if (!strcmp(path, "--refresh")) {
 				has_errors |= refresh_cache();
 				continue;
diff --git a/usage.c b/usage.c
index 86211c9141b..dfa87fe1191 100644
--- a/usage.c
+++ b/usage.c
@@ -15,7 +15,7 @@ static void report(const char *prefix, const char *err, va_list params)
 void usage(const char *err)
 {
 	fprintf(stderr, "usage: %s\n", err);
-	exit(1);
+	exit(129);
 }
 
 void die(const char *err, ...)
@@ -25,7 +25,7 @@ void die(const char *err, ...)
 	va_start(params, err);
 	report("fatal: ", err, params);
 	va_end(params);
-	exit(1);
+	exit(128);
 }
 
 int error(const char *err, ...)