I'm not sure what you're doing, but here's how I handle conflicts. For the sake of this post, let's assume that the conflict is in changelog (which is where they seem to crop up the most for me).
Originally Posted by OutOfReach
And you're done...unless you have more conflicts to resolve.
# meld will show you a three-way diff, which you can use to determine what should
# happen. Usually, *.OTHER is the proper file to use. Meld allows editing in case that
# should be necessary.
# Assuming you're resolving in favor of changelog.OTHER (possibly with some edits):
bzr resolve changelog