I finally checked-in the new resolve dialog code. This should fix all known bugs like removed characters or added new lines. Another thing that should work now, is the case when a conflict marker and the content is on the same line. This never worked before. Yippee!
Unfortunately it was too late to backport it to the KDE 3.2.2 branch, because there wasn’t enough time to test it. So it will be part of the KDE 3.2.3 release.