Don't understand how that's possible. All pools and explorer that are running new client are on 175039 at the moment. Devs confirmed p2pool is on wrong chain with wrong hash for block 175038.

Ah. He downloaded the new client -after- block 175,000 so invalid blocks already in his data files.

Confirmed by someone in BTC-E chat that BTC-E is on the forked chain. Deposits/withdrawals working with forked chain, not with official chain.