Comment 1 for bug 135320

I got the same (or similar) problem yesterday when merging changes from my development branch to my stable branch:

$ bzr merge /home/antoranz/bus/eclipse
+N doc/Cities/Bogotá/
+N doc/Cities/Bogotá/TransMilenio A.png
+N doc/Cities/Bogotá/TransMilenio B.png
+N doc/Cities/Bogotá/TransMilenio C.png
+N doc/Cities/Bogotá/TransMilenio D.png
+N doc/Cities/Bogotá/city.xml
 M doc/Cities/Maracaibo/city.xml
 M web/server/includes/city/ProcessedCity.php
 M web/server/js/public_transport.js.php
 M web/server/seeloadedcity.php
All changes applied successfully.
bzr: ERROR: exceptions.UnicodeDecodeError: 'ascii' codec can't decode byte 0xc3 in position 16: ordinal not in range(128)

Traceback (most recent call last):
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 802, in run_bzr_catch_errors
    return run_bzr(argv)
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 758, in run_bzr
    ret = run(*run_argv)
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 492, in run_argv_aliases
    return self.run(**all_cmd_args)
  File "/usr/lib/python2.5/site-packages/bzrlib/builtins.py", line 2879, in run
    cleanup()
  File "/usr/lib/python2.5/site-packages/bzrlib/workingtree_4.py", line 1117, in unlock
    self.flush()
  File "/usr/lib/python2.5/site-packages/bzrlib/workingtree_4.py", line 296, in flush
    self.current_dirstate().save()
  File "/usr/lib/python2.5/site-packages/bzrlib/dirstate.py", line 1974, in save
    self._state_file.writelines(self.get_lines())
  File "/usr/lib/python2.5/site-packages/bzrlib/dirstate.py", line 1506, in get_lines
    return self._get_output_lines(lines)
  File "/usr/lib/python2.5/site-packages/bzrlib/dirstate.py", line 1842, in _get_output_lines
    inventory_text = '\0\n\0'.join(lines)
UnicodeDecodeError: 'ascii' codec can't decode byte 0xc3 in position 16: ordinal not in range(128)

bzr 1.0.0 on python 2.5.1.final.0 (linux2)
arguments: ['/usr/bin/bzr', 'merge', '/home/antoranz/bus/eclipse']
encoding: 'UTF-8', fsenc: 'UTF-8', lang: 'es_CO.UTF-8'
plugins:
  gtk /usr/lib/python2.5/site-packages/bzrlib/plugins/gtk [0.93.0]
  launchpad /usr/lib/python2.5/site-packages/bzrlib/plugins/launchpad [unknown]
  multiparent /usr/lib/python2.5/site-packages/bzrlib/plugins/multiparent.pyc [unknown]
*** Bazaar has encountered an internal error.
    Please report a bug at https://bugs.launchpad.net/bzr/+filebug
    including this traceback, and a description of what you
    were doing when the error occurred.
/usr/lib/python2.5/site-packages/bzrlib/lockable_files.py:110: UserWarning: file group LockableFiles(<bzrlib.transport.local.LocalTransport url=file:///home/antoranz/bus/stable/.bzr/checkout/>) was not explicitly unlocked
  warn("file group %r was not explicitly unlocked" % self)
/usr/lib/python2.5/site-packages/bzrlib/lock.py:79: UserWarning: lock on <open file u'/home/antoranz/bus/stable/.bzr/checkout/dirstate', mode 'rb+' at 0x86ab578> not released
  warn("lock on %r not released" % self.f)

$ bzr --version
Bazaar (bzr) 1.0.0
  Python interpreter: /usr/bin/python 2.5.1.final.0
  Python standard library: /usr/lib/python2.5
  bzrlib: /usr/lib/python2.5/site-packages/bzrlib
  Bazaar configuration: /home/antoranz/.bazaar
  Bazaar log file: /home/antoranz/.bzr.log

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http://bazaar-vcs.org/

bzr comes with ABSOLUTELY NO WARRANTY. bzr is free software, and
you may use, modify and redistribute it under the terms of the GNU
General Public License version 2 or later.

On gutsy.