bug#4280: 23.1.50; vc-update fails under conflicts

Hi

When using vc-update I'm receiving the following error message in *vc*:

  Conflict discovered in 'ansys-mode.el'.
  Select: (p) postpone, (df) diff-full, (e) edit,
          (h) help for more options: svn: Can't read stdin: End of file found

In GNU Emacs 23.1.50.1 (i486-pc-linux-gnu, GTK+ Version 2.12.12)
 of 2009-07-30 on elegiac, modified by Debian
 (emacs-snapshot package, version 1:20090730-1~lenny1)
Windowing system distributor `The X.Org Foundation', version 11.0.10402000
configured using `configure  '--build' 'i486-linux-gnu' '--host' 'i486-linux-gnu' '--prefix=/usr' '--sharedstatedir=/var/lib' '--libexecdir=/usr/lib' '--localstatedir=/var' '--infodir=/usr/share/info' '--mandir=/usr/share/man' '--with-pop=yes' '--enable-locallisppath=/etc/emacs-snapshot:/etc/emacs:/usr/local/share/emacs/23.1.50/site-lisp:/usr/local/share/emacs/site-lisp:/usr/share/emacs/23.1.50/site-lisp:/usr/share/emacs/site-lisp' '--with-x=yes' '--with-x-toolkit=gtk' 'build_alias=i486-linux-gnu' 'host_alias=i486-linux-gnu' 'CFLAGS=-DDEBIAN -DSITELOAD_PURESIZE_EXTRA=5000 -g -O2' 'LDFLAGS=-g -Wl,--as-needed' 'CPPFLAGS=''

Important settings:
  value of $LC_ALL: nil
  value of $LC_COLLATE: nil
  value of $LC_CTYPE: nil
  value of $LC_MESSAGES: nil
  value of $LC_MONETARY: nil
  value of $LC_NUMERIC: nil
  value of $LC_TIME: nil
  value of $LANG: en_US.UTF-8
  value of $XMODIFIERS: nil
  locale-coding-system: utf-8-unix
  default-enable-multibyte-characters: t

Major mode: Fundamental

Minor modes in effect:
  shell-dirtrack-mode: t
  global-hl-line-mode: t
  display-time-mode: t
  show-paren-mode: t
  tooltip-mode: t
  mouse-wheel-mode: t
  file-name-shadow-mode: t
  global-font-lock-mode: t
  font-lock-mode: t
  global-auto-composition-mode: t
  auto-composition-mode: t
  auto-encryption-mode: t
  auto-compression-mode: t
  column-number-mode: t
  line-number-mode: t
  transient-mark-mode: t
  abbrev-mode: t

Recent input:
<switch-frame> <switch-frame> <switch-frame> <switch-frame> 
<switch-frame> <switch-frame> <switch-frame> <f2> <f3> 
<f2> <f3> C-x C-f C-g C-x o C-s a n s <return> <return> 
C-n C-n C-n C-n <return> y C-x v m <return> C-SPC C-n 
C-n C-n M-w M-x M-p M-n C-a C-k r e p o r t <tab> 
<return>

Recent messages:
Marking diary entries...done
For information about GNU Emacs and the GNU system, type C-h C-a.
Loading tramp...done
Quit
Mark saved where search started
Please type y, n, or !: 
Merging changes into /home/dieter/ansys-mode_11.0.2/ansys-mode.el...
vc-do-command: Running svn update ansys-mode.el...FAILED (status 1)
Mark set
goto-history-element: Beginning of history; no preceding item

Load-path shadows:
/usr/share/emacs/site-lisp/maxima/emaxima hides /usr/share/emacs-snapshot/site-lisp/maxima/emaxima
/usr/share/emacs/site-lisp/maxima/smart-complete hides /usr/share/emacs-snapshot/site-lisp/maxima/smart-complete
/usr/share/emacs/site-lisp/maxima/maxima hides /usr/share/emacs-snapshot/site-lisp/maxima/maxima
/usr/share/emacs/site-lisp/maxima/bookmode hides /usr/share/emacs-snapshot/site-lisp/maxima/bookmode
/usr/share/emacs/site-lisp/maxima/maxima-font-lock hides /usr/share/emacs-snapshot/site-lisp/maxima/maxima-font-lock
/usr/share/emacs/site-lisp/maxima/sshell hides /usr/share/emacs-snapshot/site-lisp/maxima/sshell
/usr/share/emacs/23.1.50/site-lisp/debian-startup hides /usr/share/emacs/site-lisp/debian-startup