The following patch updated the status of issue701 to be resolved in the unstable branch:

* resolved issue701: fixed bug in commutation of certain conflicting patches. 
We were failing to treat a resolution patch properly when commuting a patch
that depends on the resolution with one that conflicts with it.  :(

You can view the patch details online here: 
http://darcs.net/cgi-bin/darcs.cgi/unstable/?c=annotate&p=20080226223612-72aca-4f81f06d64e5e6b37b9ca08fd112d34eddf912fe.gz