It isn't easy to understand which conflicting version is which.

CVS puts version information into markers:
<pre>
<<<<<<< PLIST
@comment $NetBSD$
=======
@comment $NetBSD: PLIST,v 1.28 2010/09/13 12:43:16 asau Exp $
>>>>>>> 1.28
</pre>
meaning that the text below the opening marker is fresh,
and the text above the closing marker comes from revision 1.28.

It would be nice to see Fossil behaving in a similar way, e.g. putting version id and/or time stamp in conflict marker.