tested with cvs
//files are _not _ added as binaries
get some project from cvs to 2 diff locations
select some file. let it has same revision 1.4.2.2 in both locations
externally commit the version 1.4.2.3 of this file
in idea make the conflicting change to this file
invoke update, select to merge files:
the local version is shown corectly, but the 'merge results' and 'changes from server' tabs are mixed: version 1.4.2.3 is shown as merge result, the base version is shown as server version,
if you select 'accept theirs' instead of merge, you get the base revision instead of server one also.