diff -r a2dc8819bb0d -r 6217040b2780 mercurial/merge.py
--- a/mercurial/merge.py	Sun Mar 06 22:03:30 2011 +0100
+++ b/mercurial/merge.py	Sat Mar 05 16:34:59 2011 -0600
@@ -74,7 +74,10 @@
         fco = octx[ofile]
         fca = self._repo.filectx(afile, fileid=anode)
         r = filemerge.filemerge(self._repo, self._local, lfile, fcd, fco, fca)
-        if not r:
+        if r is None:
+            # no real conflict
+            del self._state[dfile]
+        elif not r:
             self.mark(dfile, 'r')
         return r