That's a very in-depth response, Daniel, thank you! I have read
through the links you posted and the main realisation that I have come
to is that SVN does the clever stuff like merging, versioning, etc.,
and Versions app just provides a friendly interface to invoke those
clever tools. I have a few followup questions though:

1) why does Versions create 3 extra versions of the file if there is a
conflict? They kind of get in the way as I always have to modify the
main file and dont look at the .mine, .r19, .r20 ? Can it not just say
"conflict, here's a fileMerge window for you to create a single file
from these two" ?

2) every time I 'update' do I need to check the log for which files
have been updated and compare changes with files I have modified? I
don't see when you would use the 'diff' command, apart from times
where there has been a specific conflict that Versions notifies of.

3) If myself and my colleague update and commit regularly as we work
on the same project throughout the day and never see a 'conflict'
error from Versions, can we assume that at the end of the day our work
has been merged in both the repository and our working copies without
issue?

I think I am getting to grips with it, just trying to clear these
things in my head.
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