I haven't checked how RCS merge does it, but I know how xdiff/xmerge.c
does it ;-)
Basically, it takes the two diffs relative to the base file and works on
the overlapping hunks (i.e. on hunks where the ranges in the base file
overlap).
So we need a diff algorithm very much if we were to imitate that code in
JGit, which I very much plan to do.
Ciao,
Dscho
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