Person A does "svn co http://svn.collab.net/repos/svn/trunk -d wc1"
Person B does same thing with wc2.
### note that that is a checkout of a repos subdir, not its top level ###
A commits changes to, say, IDEAS, subversion/mod_dav_svn/update.c, and a few
other things.
B commits changes to some other files.
A, who now has a mixed revision working copy, runs "svn up". See the failure.
(Actually, not sure if this is the precise repro recipe, but if you can't
reproduce it, please don't close the issue without mailing the dev list. This
bug has shown up many times, just need it to happen once when have time to
transcribe it exactly.)