Bug: update trashes WC

This is using the precompiled svn 0.19.0 on W2K, and
ra_local access.

If diff3 is flakey and returns failure, an update which
requires merging of code can leave the WC unusable. In my
case, I was using GNU diff3 compiled for win32 (but
apparently there is something wrong with it or with my
setup). Operation is correct if I use the internal diff3,
but not correctable if I first run with the bogus diff3
(thereby destabilising things) and then modify the config
file to revert to the internal diff3.

I am attaching a log showing the sequence of commands to
reproduce this error minimally, and the responses given to
the commands. Also attached is a copy of the entire WC
directory in a zip file.

Bruce

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