A DESCRIPTION OF THE PROBLEM :
The documentation for java.nio.file.Files.isSameFile() says this:

It is transitive: for three Paths f, g, and h, if isSameFile(f,g) returns true and isSameFile(g,h) returns true, then isSameFile(g,h) will return return true.

I believe it should say this:

It is transitive: for three Paths f, g, and h, if isSameFile(f,g) returns true and isSameFile(g,h) returns true, then isSameFile(f,h) will return return true.

That is, the last "isSameFile(g,h)" should be "isSameFile(f,h)".

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
It is transitive: for three Paths f, g, and h, if isSameFile(f,g) returns true and isSameFile(g,h) returns true, then isSameFile(f,h) will return return true.
ACTUAL -
It is transitive: for three Paths f, g, and h, if isSameFile(f,g) returns true and isSameFile(g,h) returns true, then isSameFile(g,h) will return return true.

URL OF FAULTY DOCUMENTATION :
http://download.java.net/jdk7/docs/api/java/nio/file/Files.html#isSameFile(java.nio.file.Path, java.nio.file.Path)