This didn't make it into the updates, yet:

"Change Set: UnixDirSec-bf Date: 5 November 2001 Author: Bert Freudenberg

Fake directory entries above the default directory when Unix VM is in secure mode. Might be useful for other systems, too?"

Explanation: I just stumbled over that bug again when I downloaded a fresh image. I always run Squeak in secure (file sandbox) mode so it cannot access the directories above. This makes Directory>>assureExistance perform an indefinite loop. My fix makes sure that even for directories above the sandbox one directory entry is generated so the existence test succeeds. This is the right place for the fix, other features start working again, like the FileList listing that was broken when one happened to klick outside the sandbox: now you can at least go back where you belong ...

-- Bert