I have the same problem. The merge dialog never appears, even if I have set the "Use Visual Merge" to "Yes" and the files are changed. My scenario 1). Branch file x to y 2). Modify y 3). Select Merge branches on x. The only thing I get is "Have any conflicts in x been properly resolved" Do I miss something ?
Seems to me that even then I have set "Use visual merge" to "Yes" VSS acts like it was set to "Only if there are conflicts". I'm running 2005 SP1. 1). Share file x to y 2). Branch file y 3). Edit file y. 4). Edit file x. 5). Merge and the dialog appears if there are conflicts.