Dealing with svn conflicts: svn resolved
If you get a conflict on an svn update, manually edit your file to sort out the conflict and then run:
svn resolved myfile.txt
This will clear up the temporary files created by the conflict, and tell svn that its all ok. Then you are safe to run:
svn commit myfile.txt -m "All ok now"
Reference: http://svnbook.red-bean.com/en/1.1/ch03s05.html#svn-ch-3-sect-5.4

