`abbreviate-file-name' buggy when $HOME is set

`abbreviate-file-name' buggy when $HOME is set

[Matthieu Moy]

This bug report will be sent to the Free Software Foundation,
not to your local site managers!
Please write in English, because the Emacs maintainers do not have
translators to read other languages for them.

Your bug report will be posted to the bug-gnu-emacs@gnu.org mailing list,
and to the gnu.emacs.bug news group.

In GNU Emacs 21.2.1 (i386-debian-linux-gnu, X toolkit, Xaw3d scroll bars)
 of 2002-03-22 on raven, modified by Debian
configured using `configure  i386-debian-linux-gnu --prefix=/usr --sharedstatedir=/var/lib --libexecdir=/usr/lib --localstatedir=/var/lib --infodir=/usr/share/info --mandir=/usr/share/man --with-pop=yes --with-x=yes --with-x-toolkit=athena --without-gif'
Important settings:
  value of $LC_ALL: nil
  value of $LC_COLLATE: nil
  value of $LC_CTYPE: nil
  value of $LC_MESSAGES: nil
  value of $LC_MONETARY: nil
  value of $LC_NUMERIC: nil
  value of $LC_TIME: nil
  value of $LANG: nil
  locale-coding-system: nil
  default-enable-multibyte-characters: t

Please describe exactly what actions triggered the bug
and the precise symptoms of the bug:

If I M-x setenv RET HOME RET /path/to/dir RET, then,
`abbreviate-file-name' doesn't take the new value into account. In
particular, this breaks the `cd' command.

-- 
Matthieu