diff -r ed01fa8ceaa6 -r 1dca460e7d1e mercurial/merge.py
--- a/mercurial/merge.py	Thu Jun 26 13:58:22 2008 -0500
+++ b/mercurial/merge.py	Thu Jun 26 13:58:24 2008 -0500
@@ -460,7 +460,7 @@
         action = []
         if not force:
             _checkunknown(wc, p2)
-        if not util.checkfolding(repo.path):
+        if not util.checkcase(repo.path):
             _checkcollision(p2)
         action += _forgetremoved(wc, p2, branchmerge)
         action += manifestmerge(repo, wc, p2, pa, overwrite, partial)