svn update and externals

Hi all,

I have a repository which needs to pull in code from another department's
repository, and to do this, we use an external.

The trouble is, when the external URL is updated to point at a new tag,
people who subsequently run svn update to update their codebase run into
the error:

subversion/libsvn_wc/update_editor.c:1061: (apr_err=155000)
svn: Failed to add directory 'alchemy-cdo/src/main': object of the same
name already exists

The manual at
http://svnbook.red-bean.com/en/1.2/svn.advanced.externals.html implies
that svn update should bring down any changes from the old to new external
definition, but we are not seeing this here.

Is this a known bug? Is there a workaround? Right now, every time we cut a
new version (and update the external) we have to blank out our continuum
working directories, which is a bit extreme.

We are using svn, version 1.4.2 (r22196).

Regards,
Graham

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