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diff -up mc-4.6.2-pre1/src/subshell.c.shellcwd mc-4.6.2-pre1/src/subshell.c
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--- mc-4.6.2-pre1/src/subshell.c.shellcwd	2008-09-02 11:28:31.000000000 +0200
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+++ mc-4.6.2-pre1/src/subshell.c	2008-09-02 11:41:39.000000000 +0200
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@@ -562,9 +562,6 @@ int invoke_subshell (const char *command
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     feed_subshell (how, FALSE);
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-    if (new_dir && subshell_alive && strcmp (subshell_cwd, current_panel->cwd))
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-	*new_dir = subshell_cwd;  /* Make MC change to the subshell's CWD */
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-
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     /* Restart the subshell if it has died by SIGHUP, SIGQUIT, etc. */
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     while (!subshell_alive && !quit && use_subshell)
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 	init_subshell ();