problem with merge /etc during buildworld

The CVSUP, recompile Kernel, buildworld and installworld have been successful! I was surpised, it's very long one!! It was almost six hours to finish. Is there any way, I can make it more quickly? Hopeful, you are glad to change what I had done. I already wrote it down on note and put in here. It's below..

Anyway, it went so smoothly, but I have a very simple problem. I am sure, it's my fault by incorrect the merge in /etc.. Now, everything have been overwritten and whole my old setting are gone such as rc.conf and others. I am wondering, what have I done wrong?

Here, what I had done...

-=Update CVSUP=-
# cd /usr/ports/net/cvsup && make && make install && make clean

Create /usr/local/etc/cvsup/stable-supfile with the following context:
*default host=cvsup8.FreeBSD.org
*default base=/usr
*default prefix=/usr
*default release=cvs tag=RELENG_4
*default delete use-rel-suffix
*default compress
src-all

# /usr/local/bin/cvsup -g -L 2 /usr/local/etc/cvsup/stable-supfile

-=Recompile Kernel=-
# cd /usr/src/sys/i386/conf
# cp GENERIC MYKERNEL
# cd /usr/src
# make buildkernel KERNCONF=MYKERNEL
# make installkernel KERNCONF=MYKERNEL

-=Reboot=-
# shutdown -r now

-=Buildworld=-
# mount -u /
# mount -a -t ufs
# swapon -a
# cp /etc/defaults/make.conf /etc/make.conf

Edit /etc/make.conf
CFLAGS= -O -pipe
NOPROFILE= true
USA_RESIDENT= yes

# cd /usr/obj
# chflags -R noschg *
# rm -rf *

# cd /usr/src
# make buildworld

-=Installworld=-
# cd /usr/src
# make installworld

-=Update /etc=-
# cp -Rp /etc /etc.old
# /usr/sbin/mergemaster -v -w 132

-=Update /dev=-
# cd /dev
# /bin/sh MAKEDEV all

-=Update /stand=-
# cd /usr/src/release/sysinstall && make clean && make all install

-=Reboot=-
# shutdown -r now

-=DONE=-

>> it's my fault by incorrect the merge in /etc

Here is what the handbook says:

You need to build a dummy set of directories to install the new /etc and other files into. /var/tmp/root is a reasonable choice, and there are a number of subdirectories required under this as well.

# mkdir /var/tmp/root
# cd /usr/src/etc
# make DESTDIR=/var/tmp/root distrib-dirs distribution

Personally, I don't trust mergemaster and I would compare the diffs and merge the change by hand.

Thanks freebsd for help!