$ \textbf{hg init issue29}
$ \textbf{cd issue29}
$ \textbf{echo a > a}
$ \textbf{hg ci -Ama}
adding a
$ \textbf{echo b > b}
$ \textbf{hg ci -Amb}
adding b
$ \textbf{hg up 0}
0 files updated, 0 files merged, 1 files removed, 0 files unresolved
$ \textbf{mkdir b}
$ \textbf{echo b > b/b}
$ \textbf{hg ci -Amc}
adding b/b
$ \textbf{hg merge}