>  OK, so you have a different IRIX version that Jan. I could replicate the
>  problem there.

:(

I'm running IRIX 6.5.29 (IRIX64):

$ cat test.sh
#!/bin/sh

set -e

testf () {
        test -f /nonexistent || return 1
        return 0
}

if testf; then
        exit 1
fi
exit 0
$ ./test.sh ; echo $?
0

... if I'm understanding correctly then that should be a "1", yes?

P.S. Please see my other mail about "fetch" apparently not being
called.  Very strange...