Actually *do* In AnkhSVN When Two People Edit The Same File Under SVN?

Our code is in SVN. We develop using Visual Studio and the AnkhSVN plugin.Having used VSS before SVN I was used to the idea of locking files so other users know not to edit it while you are (in fact I thought this was the main point of source control, to prevent lost data from these conflicts).I've been told this rarely happens and cases where you can't work because another dev is locking you out are more frequent (which sounds like a principle that might only apply to a certain subset of dev projects). But anyway, SVN is better and we're using it.

So when I do edit a file, and go to check it in, and find out the other user has edited it too, what do I actually do?Surely there's a better way than saving a copy of my file, reverting changes,updating it from server,then merging my changes back in with winmerge? When I right-click the file and click 'merge' I'm told I should update first, so that's obviously not what I need.Update: partial answer OK, it sounds like I just hit update,then SVN merges non-conflicting changes automatically,and should let AnkhSVN know about any conflicting changes to allow some kind of resolution.Does anyone know how this works in AnkhSVN - what I'd actually do?

(if not I'll try it myself, accept the current top answer and update this question with the second half for posterity).