This is SVN telling you that it has noticed that you made a modification to that file locally, one that does not match the new version that is on the server (or the version you are coming from).
This is really timely, as I have been thinking over a better way for most people to keep their base catalog files up-to-date without requiring them to know how svn works. I plan to add a part of this as the last bit to 1.6, and then do some more with it for 1.7.
Oh, and the vast majority of the time you probably should not made modifications to the vanilla catalog files, but rather if you are building on top of them create your own catalog file, and link-in the vanilla.catalog file using a line like:
[code]include-file: 10.6_vanilla[/code]
It should not really matter where you put that line in order, but logically it should probably be first.
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