A transcript of the demonstration of the bug:

--- clip ---
pkalliok@juiblex:~/tmp/try$ mkdir foo
pkalliok@juiblex:~/tmp/try$ cd foo/
pkalliok@juiblex:~/tmp/try/foo$ darcs init
pkalliok@juiblex:~/tmp/try/foo$ echo content > file
pkalliok@juiblex:~/tmp/try/foo$ darcs add file
pkalliok@juiblex:~/tmp/try/foo$ darcs rec
addfile ./file
Shall I record this patch? (1/2) [ynWsfqadjk], or ? for help: y
hunk ./file 1
+content
Shall I record this patch? (2/2) [ynWsfqadjk], or ? for help: y
What is the patch name? p1
Do you want to add a long comment? [yn] n
Finished recording patch 'p1'
pkalliok@juiblex:~/tmp/try/foo$ ,
pkalliok@juiblex:~/tmp/try$ darcs get foo foo2
Copying patch 1 of 1... done!
Finished getting.
pkalliok@juiblex:~/tmp/try$ cd foo
pkalliok@juiblex:~/tmp/try/foo$ rm file 
pkalliok@juiblex:~/tmp/try/foo$ darcs rec
hunk ./file 1
-content
Shall I record this patch? (1/2) [ynWsfqadjk], or ? for help: y
rmfile ./file
Shall I record this patch? (2/2) [ynWsfqadjk], or ? for help: y
What is the patch name? rm1
Do you want to add a long comment? [yn] n
Finished recording patch 'rm1'
pkalliok@juiblex:~/tmp/try/foo$ ,
pkalliok@juiblex:~/tmp/try$ cd foo2 
pkalliok@juiblex:~/tmp/try/foo2$ rm file 
pkalliok@juiblex:~/tmp/try/foo2$ darcs rec
hunk ./file 1
-content
Shall I record this patch? (1/2) [ynWsfqadjk], or ? for help: y
rmfile ./file
Shall I record this patch? (2/2) [ynWsfqadjk], or ? for help: y
What is the patch name? rm2
Do you want to add a long comment? [yn] n
Finished recording patch 'rm2'
pkalliok@juiblex:~/tmp/try/foo2$ darcs pull
Pulling from "/home/pkalliok/tmp/try/foo"...

Tue Mar 28 08:55:58 EEST 2006  Panu Kalliokoski <atehwa@sange.fi>
  * rm1
Shall I pull this patch? (1/1) [ynWvxqadjk], or ? for help: y
We have conflicts in the following files:
./file
Finished pulling.
pkalliok@juiblex:~/tmp/try/foo2$ darcs resolve
This will trash any unrecorded changes in the working directory.
Are you sure?  [yn] y

Fail: bug in darcs!
Problem resolving conflicts in resolve!
Please report this to bugs@darcs.net,
If possible include the output of 'darcs --exact-version'.
pkalliok@juiblex:~/tmp/try/foo2$ darcs --exact-version
darcs compiled on Feb 12 2005, at 13:59:36
# configured Sat Feb 12 13:53:58 PST 2005
sh ./configure --prefix=/usr --sysconfdir=/etc --libexecdir=/usr/lib --mandir=/usr/share/man

Context:

[ removed obsolete NEWS files
Isaac Jones <ijones@syntaxpolice.org>**20050212211000] 

[syncinc with my debian repo after 1.0.0 bug
Isaac Jones <ijones@syntaxpolice.org>**20050212205746] 

[TAG 1.0.2
David Roundy <droundy@abridgegame.org>**20050204123805] 

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I don't know in what version this was fixed, but the latest
stable (1.0.6) does not have this bug.

On Tue, Mar 28, 2006 at 11:12:20PM +0000, Tommy Pettersson wrote:
> I don't know in what version this was fixed, but the latest
> stable (1.0.6) does not have this bug.

Okay, thanks and sorry for not checking it with a current version.

Panu