After doing an svn update, if you run svn status and get a " > local unversioned, incoming add upon update" error, perform the following:
svn resolve --accept working <conflicting_dir>
svn revert <conflicting_dir>
svn status
Thanks, http://tomhennigan.blogspot.com/2012/01/resolve-tree-conflict-svn-local.html#!/2012/01/resolve-tree-conflict-svn-local.html