correct workflow with bare repo and pull?

Myself and the other developer on the team have private repos, and we push to a bare repo (which we use for Hudson builds). For now we only use the master branch. No other remote repos. When another developer pushes changes to the bare repo, and I pull them, all of the files they pushed show up as modified on my box when I do "git status" (even though I had not modified them). How to avoid this? Also, one developer saw really strange results when they did a "git pull origin master" and "git status" -- the paths shown below do not exist in the local work area. These files have always lived under a-core/.... so it is really odd that they show up under a-web # On branch master # Changes to be committed: # (use "git reset HEAD <file>..." to unstage) # # new file: a-web/src/main/java/com/blah/account/Account.java # new file: a-web/src/main/java/com/blah/account/AccountType.java # # Changed but not updated: # (use "git add/rm <file>..." to update what will be committed) # (use "git checkout -- <file>..." to discard changes in working directory) # # deleted: a-web/src/main/java/com/blah/account/Account.java # deleted: a-web/src/main/java/com/blah/account/AccountType.java

What are we doing wrong?