This issue is broken out from the old grab-bag issue #667 "handle case sensitivity edge cases" http://subversion.tigris.org/issues/show_bug.cgi?id=667. When a case insensitive client receives an update where only the case has changed (e.g. file name changed from foo.txt to Foo.txt, or directory changed case only) it fails, partially or completely corrupting the working copy. The working copy code implements the rename as first an add of the new file and then removal of the old file. When the add is executed the name will collide on a case insensitive client with a 'file already exists'-type of error. Workarounds consists of removing the containing folder and running update again. If the rename is too high up in the file structure it may be necessary to remove the entire working copy and check it out again. The workaround is potentially time consuming for developers and potentially can cause a lot of troubles for automated checkouts for build bots or automatic synchronization type of services.
Original issue reported by nicke