diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/CachedObjectDirectory.java b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/CachedObjectDirectory.java
index ca0f06f..f0159f6 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/CachedObjectDirectory.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/CachedObjectDirectory.java
@@ -54,7 +54,6 @@
 import org.eclipse.jgit.lib.ObjectDatabase;
 import org.eclipse.jgit.lib.ObjectId;
 import org.eclipse.jgit.lib.ObjectIdSubclassMap;
-import org.eclipse.jgit.lib.ObjectInserter;
 import org.eclipse.jgit.lib.ObjectLoader;
 import org.eclipse.jgit.storage.pack.ObjectToPack;
 import org.eclipse.jgit.storage.pack.PackWriter;
@@ -113,7 +112,7 @@
 	}
 
 	@Override
-	public ObjectInserter newInserter() {
+	public ObjectDirectoryInserter newInserter() {
 		return wrapped.newInserter();
 	}
 
@@ -214,6 +213,11 @@
 	}
 
 	@Override
+	boolean insertUnpackedObject(File tmp, ObjectId objectId, boolean force) {
+		return wrapped.insertUnpackedObject(tmp, objectId, force);
+	}
+
+	@Override
 	void selectObjectRepresentation(PackWriter packer, ObjectToPack otp,
 			WindowCursor curs) throws IOException {
 		wrapped.selectObjectRepresentation(packer, otp, curs);
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/FileObjectDatabase.java b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/FileObjectDatabase.java
index da38887..29c7a25 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/FileObjectDatabase.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/FileObjectDatabase.java
@@ -62,6 +62,9 @@
 		return new WindowCursor(this);
 	}
 
+	@Override
+	public abstract ObjectDirectoryInserter newInserter();
+
 	/**
 	 * Does the requested object exist in this database?
 	 * <p>
@@ -246,6 +249,8 @@
 	abstract long getObjectSize2(WindowCursor curs, String objectName,
 			AnyObjectId objectId) throws IOException;
 
+	abstract boolean insertUnpackedObject(File tmp, ObjectId id, boolean force);
+
 	abstract FileObjectDatabase newCachedFileObjectDatabase();
 
 	static class AlternateHandle {
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/LargePackedDeltaObject.java b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/LargePackedDeltaObject.java
index 2b98f10..8d15fcf 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/LargePackedDeltaObject.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/LargePackedDeltaObject.java
@@ -44,9 +44,12 @@
 package org.eclipse.jgit.storage.file;
 
 import java.io.BufferedInputStream;
+import java.io.File;
+import java.io.FileOutputStream;
 import java.io.IOException;
 import java.io.InputStream;
 import java.util.zip.DataFormatException;
+import java.util.zip.DeflaterOutputStream;
 import java.util.zip.InflaterInputStream;
 
 import org.eclipse.jgit.errors.IncorrectObjectTypeException;
@@ -58,7 +61,6 @@
 import org.eclipse.jgit.lib.ObjectStream;
 import org.eclipse.jgit.storage.pack.BinaryDelta;
 import org.eclipse.jgit.storage.pack.DeltaStream;
-import org.eclipse.jgit.util.TemporaryBuffer;
 import org.eclipse.jgit.util.io.TeeInputStream;
 
 class LargePackedDeltaObject extends ObjectLoader {
@@ -165,14 +167,39 @@
 
 	@Override
 	public ObjectStream openStream() throws MissingObjectException, IOException {
+		// If the object was recently unpacked, its available loose.
+		// The loose format is going to be faster to access than a
+		// delta applied on top of a base. Use that whenever we can.
+		//
+		final ObjectId myId = getObjectId();
 		final WindowCursor wc = new WindowCursor(db);
+		ObjectLoader ldr = db.openObject2(wc, myId.name(), myId);
+		if (ldr != null)
+			return ldr.openStream();
+
 		InputStream in = open(wc);
 		in = new BufferedInputStream(in, 8192);
-		return new ObjectStream.Filter(getType(), size, in) {
+
+		// While we inflate the object, also deflate it back as a loose
+		// object. This will later be cleaned up by a gc pass, but until
+		// then we will reuse the loose form by the above code path.
+		//
+		int myType = getType();
+		long mySize = getSize();
+		final ObjectDirectoryInserter odi = db.newInserter();
+		final File tmp = odi.newTempFile();
+		DeflaterOutputStream dOut = odi.compress(new FileOutputStream(tmp));
+		odi.writeHeader(dOut, myType, mySize);
+
+		in = new TeeInputStream(in, dOut);
+		return new ObjectStream.Filter(myType, mySize, in) {
 			@Override
 			public void close() throws IOException {
-				wc.release();
 				super.close();
+
+				odi.release();
+				wc.release();
+				db.insertUnpackedObject(tmp, myId, true /* force creation */);
 			}
 		};
 	}
@@ -195,13 +222,9 @@
 		final ObjectLoader base = pack.load(wc, baseOffset);
 		DeltaStream ds = new DeltaStream(delta) {
 			private long baseSize = SIZE_UNKNOWN;
-			private TemporaryBuffer.LocalFile buffer;
 
 			@Override
 			protected InputStream openBase() throws IOException {
-				if (buffer != null)
-					return buffer.openInputStream();
-
 				InputStream in;
 				if (base instanceof LargePackedDeltaObject)
 					in = ((LargePackedDeltaObject) base).open(wc);
@@ -213,9 +236,7 @@
 					else if (in instanceof ObjectStream)
 						baseSize = ((ObjectStream) in).getSize();
 				}
-
-				buffer = new TemporaryBuffer.LocalFile(db.getDirectory());
-				return new TeeInputStream(in, buffer);
+				return in;
 			}
 
 			@Override
@@ -228,14 +249,11 @@
 				}
 				return baseSize;
 			}
-
-			@Override
-			public void close() throws IOException {
-				super.close();
-				if (buffer != null)
-					buffer.destroy();
-			}
 		};
+		if (type == Constants.OBJ_BAD) {
+			if (!(base instanceof LargePackedDeltaObject))
+				type = base.getType();
+		}
 		if (size == SIZE_UNKNOWN)
 			size = ds.getSize();
 		return ds;
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectory.java b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectory.java
index 29a89bc..372a978 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectory.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectory.java
@@ -69,7 +69,6 @@
 import org.eclipse.jgit.lib.Constants;
 import org.eclipse.jgit.lib.ObjectDatabase;
 import org.eclipse.jgit.lib.ObjectId;
-import org.eclipse.jgit.lib.ObjectInserter;
 import org.eclipse.jgit.lib.ObjectLoader;
 import org.eclipse.jgit.lib.RepositoryCache;
 import org.eclipse.jgit.lib.RepositoryCache.FileKey;
@@ -176,7 +175,7 @@
 	}
 
 	@Override
-	public ObjectInserter newInserter() {
+	public ObjectDirectoryInserter newInserter() {
 		return new ObjectDirectoryInserter(this, config);
 	}
 
@@ -455,8 +454,48 @@
 		}
 	}
 
-	void addUnpackedObject(ObjectId id) {
-		unpackedObjectCache.add(id);
+	@Override
+	boolean insertUnpackedObject(File tmp, ObjectId id, boolean force) {
+		if (!force && has(id)) {
+			// Object is already in the repository, remove temporary file.
+			//
+			tmp.delete();
+			return true;
+		}
+		tmp.setReadOnly();
+
+		final File dst = fileFor(id);
+		if (force && dst.exists()) {
+			tmp.delete();
+			return true;
+		}
+		if (tmp.renameTo(dst)) {
+			unpackedObjectCache.add(id);
+			return true;
+		}
+
+		// Maybe the directory doesn't exist yet as the object
+		// directories are always lazily created. Note that we
+		// try the rename first as the directory likely does exist.
+		//
+		dst.getParentFile().mkdir();
+		if (tmp.renameTo(dst)) {
+			unpackedObjectCache.add(id);
+			return true;
+		}
+
+		if (!force && has(id)) {
+			tmp.delete();
+			return true;
+		}
+
+		// The object failed to be renamed into its proper
+		// location and it doesn't exist in the repository
+		// either. We really don't know what went wrong, so
+		// fail.
+		//
+		tmp.delete();
+		return false;
 	}
 
 	boolean tryAgain1() {
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectoryInserter.java b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectoryInserter.java
index a1f224c..d92285d 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectoryInserter.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/storage/file/ObjectDirectoryInserter.java
@@ -83,40 +83,10 @@
 		final MessageDigest md = digest();
 		final File tmp = toTemp(md, type, len, is);
 		final ObjectId id = ObjectId.fromRaw(md.digest());
-		if (db.has(id)) {
-			// Object is already in the repository, remove temporary file.
-			//
-			tmp.delete();
+		if (db.insertUnpackedObject(tmp, id, false /* no duplicate */))
 			return id;
-		}
 
 		final File dst = db.fileFor(id);
-		if (tmp.renameTo(dst)) {
-			db.addUnpackedObject(id);
-			return id;
-		}
-
-		// Maybe the directory doesn't exist yet as the object
-		// directories are always lazily created. Note that we
-		// try the rename first as the directory likely does exist.
-		//
-		dst.getParentFile().mkdir();
-		if (tmp.renameTo(dst)) {
-			db.addUnpackedObject(id);
-			return id;
-		}
-
-		if (db.has(id)) {
-			tmp.delete();
-			return id;
-		}
-
-		// The object failed to be renamed into its proper
-		// location and it doesn't exist in the repository
-		// either. We really don't know what went wrong, so
-		// fail.
-		//
-		tmp.delete();
 		throw new ObjectWritingException("Unable to create new object: " + dst);
 	}
 
@@ -140,15 +110,12 @@
 			final InputStream is) throws IOException, FileNotFoundException,
 			Error {
 		boolean delete = true;
-		File tmp = File.createTempFile("noz", null, db.getDirectory());
+		File tmp = newTempFile();
 		try {
 			DigestOutputStream dOut = new DigestOutputStream(
 					compress(new FileOutputStream(tmp)), md);
 			try {
-				dOut.write(Constants.encodedTypeString(type));
-				dOut.write((byte) ' ');
-				dOut.write(Constants.encodeASCII(len));
-				dOut.write((byte) 0);
+				writeHeader(dOut, type, len);
 
 				final byte[] buf = buffer();
 				while (len > 0) {
@@ -162,7 +129,6 @@
 				dOut.close();
 			}
 
-			tmp.setReadOnly();
 			delete = false;
 			return tmp;
 		} finally {
@@ -171,7 +137,19 @@
 		}
 	}
 
-	private DeflaterOutputStream compress(final OutputStream out) {
+	void writeHeader(OutputStream out, final int type, long len)
+			throws IOException {
+		out.write(Constants.encodedTypeString(type));
+		out.write((byte) ' ');
+		out.write(Constants.encodeASCII(len));
+		out.write((byte) 0);
+	}
+
+	File newTempFile() throws IOException {
+		return File.createTempFile("noz", null, db.getDirectory());
+	}
+
+	DeflaterOutputStream compress(final OutputStream out) {
 		if (deflate == null)
 			deflate = new Deflater(config.get(CoreConfig.KEY).getCompression());
 		else