Thanks for the bug report. I reproduced the problem and installed the attached 
patch to fix it. It strikes me, though, that the code still won't work in other 
cases (e.g., symlinks containing ":"), and that Emacs probably has other 
instances of confusion between how it treats symlinks and how the OS treats 
them. I'll CC: this to Michael to give him a heads-up about this particular 
issue, as I'm not really up to speed on magic file names.