$ hg init repo

  $ cd repo

  $ echo base > base

  $ hg add base

  $ hg commit -m "base"

  $ hg bookmark -i base

  $ mkdir a

  $ echo 1 > a/b

  $ hg add a/b

  $ hg commit -m "file"

  $ hg bookmark -i file

  $ echo 2 > a/b

  $ hg commit -m "file2"

  $ hg bookmark -i file2

  $ hg up 0

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

  $ mkdir a

  $ ln -s c a/b

  $ hg add a/b

  $ hg commit -m "link"

  created new head

  $ hg bookmark -i link

  $ hg up 0

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

  $ mkdir -p a/b/c

  $ echo 2 > a/b/c/d

  $ hg add a/b/c/d

  $ hg commit -m "dir"

  created new head

  $ hg bookmark -i dir

Merge - local file conflicts with remote directory

  $ hg up file

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

  (activating bookmark file)

  $ hg bookmark -i

  $ hg merge --verbose dir

  resolving manifests

  a/b: path conflict - a file or link has the same name as a directory

  the local file has been renamed to a/b~0ed027b96f31

  resolve manually then use 'hg resolve --mark a/b'

  moving a/b to a/b~0ed027b96f31 (glob)

  getting a/b/c/d

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

  use 'hg resolve' to retry unresolved file merges or 'hg update -C .' to abandon

  [1]

  $ hg status

  M a/b/c/d

  A a/b~0ed027b96f31

  R a/b

  $ hg resolve --all

  a/b: path conflict must be resolved manually

  $ hg forget a/b~0ed027b96f31 && rm a/b~0ed027b96f31

  $ hg resolve --mark a/b

  (no more unresolved files)

  $ hg commit -m "merge file and dir (deleted file)"

Merge - local symlink conflicts with remote directory

  $ hg up link

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

  (activating bookmark link)

  $ hg bookmark -i

  $ hg merge dir

  a/b: path conflict - a file or link has the same name as a directory

  the local file has been renamed to a/b~2ea68033e3be

  resolve manually then use 'hg resolve --mark a/b'

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

  use 'hg resolve' to retry unresolved file merges or 'hg update -C .' to abandon

  [1]

  $ hg status

  M a/b/c/d

  A a/b~2ea68033e3be

  R a/b

  $ hg resolve --list

  P a/b

  $ hg resolve --all

  a/b: path conflict must be resolved manually

  $ hg mv a/b~2ea68033e3be a/b.old

  $ hg resolve --mark a/b

  (no more unresolved files)

  $ hg resolve --list

  R a/b

  $ hg commit -m "merge link and dir (renamed link)"

Merge - local directory conflicts with remote file or link

  $ hg up dir

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

  (activating bookmark dir)

  $ hg bookmark -i

  $ hg merge file

  a/b: path conflict - a file or link has the same name as a directory

  the remote file has been renamed to a/b~0ed027b96f31

  resolve manually then use 'hg resolve --mark a/b'

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

  use 'hg resolve' to retry unresolved file merges or 'hg update -C .' to abandon

  [1]

  $ hg status

  A a/b~0ed027b96f31

  $ hg resolve --all

  a/b: path conflict must be resolved manually

  $ hg mv a/b~0ed027b96f31 a/b/old-b

  $ hg resolve --mark a/b

  (no more unresolved files)

  $ hg commit -m "merge dir and file (move file into dir)"

  created new head

  $ hg merge file2

  merging a/b/old-b and a/b to a/b/old-b

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

  (branch merge, don't forget to commit)

  $ cat a/b/old-b

  2

  $ hg commit -m "merge file2 (copytrace tracked rename)"

  $ hg merge link

  a/b: path conflict - a file or link has the same name as a directory

  the remote file has been renamed to a/b~2ea68033e3be

  resolve manually then use 'hg resolve --mark a/b'

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

  use 'hg resolve' to retry unresolved file merges or 'hg update -C .' to abandon

  [1]

  $ hg mv a/b~2ea68033e3be a/b.old

  $ readlink.py a/b.old

  a/b.old -> c

  $ hg resolve --mark a/b

  (no more unresolved files)

  $ hg commit -m "merge link (rename link)"