It was a conflict; I ended up reverting and doing the template in Notepad++ because it was a bit easier to see where to solve the conflict.Was that an automatic merge BTW, or one with conflicts?
If it was automatic, did it prevent the rest from completing? (That would be a bug.)
It works well for most things, but if something has been modified quite a bit it's very confusing and it's still easier to go with Notepad++ comparison.Line numbers were something @Slavik noted as well, but I'm not sure how feasible it is.
But I'm already working on/looking at changes to make the merging system clearer. Right now, it shows you any change, but I'm not sure that seeing the old parent to new parent changes are really totally important (compared to seeing how your changes fit in, at least not by default).