Slim's answer is correct:
Look for the SVN marks in project.pbxproj file... remove them and it will parse correctly.
See my before and after:
BEFORE:
1325 238A69591382B45C00494480 /* HUDLayer.m in Sources,
1326 <<<<<<< .mine
1327 23D080F313835E8C004F0E5C /* GameSummaryViewController.m in Sources */,
1328 =======
1329 1023605613843E070058620A /* segmentedTimer.m in Sources */,
1330 >>>>>>> .r121
1331
AFTER:
1325 238A69591382B45C00494480 /* HUDLayer.m in Sources */,
1326 23D080F313835E8C004F0E5C /* GameSummaryViewController.m in Sources */,
1327 23F2D5E2138484EE00421AEF /* segmentedTimer.m in Sources */,
1328 );
This will parse fine. Open in Xcode and commit the project.pbxproj to SVN. This is for Xcode 4.0