Why is git clone not checking out files?

I don't understand why clone (version 1.4.4.1) is not checking out my
files:

% ls /repos/git/project
branches  description  HEAD   info     refs
config    FETCH_HEAD   hooks  objects  remotes
% git clone /repos/git/project
remote: Generating pack...
remote: Done counting 1149 objects.
remote: Deltifying 1149 objects.
remote: 149/1149) done49) done
Indexing 1149 objects.
remote: Total 1149, written 1149 (delta 619), reused 1149 (delta 619)
 100% (1149/1149) done
Resolving 619 deltas.
 100% (619/619) done
% ls project
% ls -a project
.  ..  .git


Bill