$ hg init repo

  $ cd repo

  $ echo base > base

  $ hg add base

  $ hg commit -m "base"

  $ hg bookmark -i base

  $ echo 1 > a

  $ hg add a

  $ hg commit -m "file"

  $ hg bookmark -i file

  $ echo 2 > a

  $ hg commit -m "file2"

  $ hg bookmark -i file2

  $ hg up -q 0

  $ mkdir a

  $ echo 2 > a/b

  $ hg add a/b

  $ hg commit -m "dir"

  created new head

  $ hg bookmark -i dir

Basic merge - local file conflicts with remote directory

  $ hg up -q file

  $ hg bookmark -i

  $ hg merge --verbose dir

  resolving manifests

  getting a/b

  $ hg update --clean .

Basic update - local directory conflicts with remote file

  $ hg up -q 0

  $ mkdir a

  $ echo 3 > a/b

  $ hg up file

  a: untracked directory conflicts with file

  abort: untracked files in working directory differ from files in requested revision

  [255]

  $ hg up --clean file

  abort: *: '$TESTTMP/repo/a' (glob)

  [255]

Repo is in a very bad state now - recover manually

  $ rm -r a

  $ hg up -q --clean 0

Basic update - untracked file conflicts with remote directory

  $ hg up -q 0

  $ echo untracked > a

  $ hg up --config merge.checkunknown=warn dir

  a: replacing untracked file

  1 files updated, 0 files merged, 0 files removed, 0 files unresolved

  (activating bookmark dir)

Basic clean update - local directory conflicts with changed remote file

  $ hg up -q file

  $ rm a

  $ mkdir a

  $ echo 4 > a/b

  $ hg up file2

  abort: *: '$TESTTMP/repo/a' (glob)

  [255]

  $ hg up --clean file2

  abort: *: '$TESTTMP/repo/a' (glob)

  [255]

Repo is in a very bad state now - recover manually

  $ rm -r a

  $ hg up -q --clean 0