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This is a really good step by step guide to merging via terminal: http://www.sepcot.com/blog/2007/04/SVN-Merge-Branch-Trunk
What milkboy said.
It would be nice if there was a simple way of managing merging in Versions -- not to mention dealing with conflicts -- but I guess they had/have a good reason for not doing so (whether it's to keep the app simple, or for some other reason).
I'd like to hear their thoughts on it though. In fact, I will tweet them now to find out.