diff --git a/bin/linux/fsnotifier b/bin/linux/fsnotifier
index 85973cc4aa1e..134573032b57 100755
Binary files a/bin/linux/fsnotifier and b/bin/linux/fsnotifier differ
diff --git a/bin/linux/fsnotifier64 b/bin/linux/fsnotifier64
index e4b3e5637b1f..0fae80c30ced 100755
Binary files a/bin/linux/fsnotifier64 and b/bin/linux/fsnotifier64 differ
diff --git a/native/fsNotifier/linux/inotify.c b/native/fsNotifier/linux/inotify.c
index 444a5bf978a0..77536dc3dcba 100644
--- a/native/fsNotifier/linux/inotify.c
+++ b/native/fsNotifier/linux/inotify.c
@@ -305,14 +305,17 @@ int watch(const char* root, array* mounts) {
 
   struct stat st;
   if (stat(root, &st) != 0) {
-    if (errno == EACCES) {
-      return ERR_IGNORE;
-    }
-    else if (errno == ENOENT) {
+    if (errno == ENOENT) {
       return ERR_MISSING;
     }
-    userlog(LOG_ERR, "stat(%s): %s", root, strerror(errno));
-    return ERR_ABORT;
+    else if (errno == EACCES || errno == ELOOP || errno == ENAMETOOLONG || errno == ENOTDIR) {
+      userlog(LOG_INFO, "stat(%s): %s", root, strerror(errno));
+      return ERR_CONTINUE;
+    }
+    else {
+      userlog(LOG_ERR, "stat(%s): %s", root, strerror(errno));
+      return ERR_ABORT;
+    }
   }
 
   if (S_ISREG(st.st_mode)) {
diff --git a/native/fsNotifier/linux/main.c b/native/fsNotifier/linux/main.c
index de87fad9479d..5b9ee0933b3d 100644
--- a/native/fsNotifier/linux/main.c
+++ b/native/fsNotifier/linux/main.c
@@ -36,7 +36,7 @@
 #define LOG_ENV_ERROR "error"
 #define LOG_ENV_OFF "off"
 
-#define VERSION "20130415.2136"
+#define VERSION "20130617.1827"
 #define VERSION_MSG "fsnotifier " VERSION "\n"
 
 #define USAGE_MSG \
diff --git a/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java b/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
index c5fb489f5ce9..c133139644db 100644
--- a/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/openapi/vfs/local/FileWatcherTest.java
@@ -292,6 +292,26 @@ public class FileWatcherTest extends PlatformLangTestCase {
     }
   }
 
+  public void testIncorrectPath() throws Exception {
+    File topDir = createTestDir("top");
+    File file = createTestFile(topDir, "file.zip");
+    File subDir = new File(file, "sub/zip");
+    refresh(topDir);
+
+    LocalFileSystem.WatchRequest request = watch(subDir, false);
+    try {
+      myTimeout = 10 * INTER_RESPONSE_DELAY;
+      myAccept = true;
+      FileUtil.writeToFile(file, "new content");
+      assertEvent(VFileEvent.class);
+      myTimeout = NATIVE_PROCESS_DELAY;
+    }
+    finally {
+      unwatch(request);
+      delete(topDir);
+    }
+  }
+
   public void testDirectoryOverlapping() throws Exception {
     File topDir = createTestDir("top");
     File fileInTopDir = createTestFile(topDir, "file1.txt");