Ok, I probably can't quite deliver on a promise like that (instead, I suggest you simply buy an easy button). But, when it comes to the various things that can go wrong in your Version Control workspace, "resolve" is the command that's responsible for putting things back together.
Resolve handles three "classes" of conflicts - version conflicts, namespace conflicts, and local overwrite conflicts. By and large, there are three commands (currently) that can generate conflicts - get, checkin, and merge.
The classic version conflict scenario (in the parallel development world) is the situation where you try to get or checkin a file, but someone else has checked in one or more new versions since you checked it out. Depending on how the two files changed, we may be able to automatically resolve the conflicts.
For example, if you added 3 lines to the end of the file, and someone else checked in a delete of the first line of the file, we can delete that line from your file and then you'll be up to date with the merged file (yes, we've overloaded the term 'merge'). Or maybe you made content changes to the file and someone else just renamed it. We can move the file in your workspace but preserve your changes, and again you'll be ready to check in. There are many other scenarios (many, MANY others). We'll ask you if you want to attempt to automatically resolve the changes, along with various appropriate 'manual' resolution options (keep your changes, discard your changes, use a manual merge tool, etc.).
The next kind of conflict is a namespace conflict - these arise when two items want to have the same fully-qualified name at the same time. The classic example is where you try to add a file and someone else has (presumably recently) checked in a file with the same name. There are other scenarios - you try to rename a file but someone just undeleted a file with the same name, for example. In these cases, we can't automatically fix the problem. We're still tweaking the final behavior and UI, but the current thinking is that you'll be prompted to either rename your local item, or keep it and pend a rename of the conflicting item, or undo your change. Get, checkin, and merge can all generate namespace conflicts.
The final conflict type is pretty straightforward compared to the other two. There are situations where, during a get or merge, something about the state of your workspace blocks the server from moving, writing, or overwriting one or more files. We'll prompt you to try the operation again (in case you fixed whatever the problem was on your own, perhaps by changing permissions on a folder), or overwrite the item, or cancel (as in, let me fix it!). The overwrite scenario is the classic one that SourceSafe users may be familiar with - you couldn't check out the file for some reason, so you just cleared the readonly flag and made some changes yourself. Overwrite gives the server permission to overwrite the local contents with the version you specified in get (or the tip, if you didn't specify a version).
The nice thing to note about using resolve, instead of just retrying get, is that it will "finish the get". So, if you were trying to sync your workspace to a specific point in time, or changeset, etc., resolve will finish getting your workspace into that state, instead of you having to fix the problems and then run get again (and possibly reentering a complex date or label specification).
As you can probably imagine, things get slightly more complicated when merge is involved. If there's a conflict when trying to merge change between items, you'll be prompted whether to keep the merge source's version, or the merge target's, or to automatically or manually merge the differences (if appropriate), and you'll have similar options where renames are involved as above.
We also are working on some UI to streamline the process. We want you to be able to select a course of action for a whole class of conflicts (for example, automatically merge all version conflicts, ignore namespace conflicts so I can address them individually, and overwrite locally writable items).
Any questions about resolve? Obviously there's a lot more to the story where various wacky scenarios and edge cases come into play...