cvs update not handling binary files with conflicts correctly

[S G]

I have two files with conflicts. One a binary file and another an ASCII file.

Binary file: WORD.tar
ASCII file: test9.txt
-----------------------------------------------------
##### Before merge
$ cat CVS/Entries | egrep 'WOR|test9.txt'
/WORD.tar/1.1.4.2/Fri Apr  8 20:17:35 2005/-kb/TMY_BRANCH
/test9.txt/1.1.4.2/Fri Apr  8 20:17:35 2005/-kk/TMY_BRANCH

$ cvs -f up -d -kk -j TAG1 -j TAG2 WORD.tar test9.txt
cvs update: nonmergeable file needs merge
cvs update: revision 1.1.2.2 from repository is now in WORD.tar
cvs update: file from working directory is now in .#WORD.tar.1.1.4.2
C WORD.tar
RCS file: /usr/local/cvs/archive/tools_test/pat/Attic/test9.txt,v
retrieving revision 1.1.2.1
retrieving revision 1.1.2.2
Merging differences between 1.1.2.1 and 1.1.2.2 into test9.txt
rcsmerge: warning: conflicts during merge

##### After merge
$ cat CVS/Entries | egrep 'WOR|test9.txt'
/WORD.tar/1.1.4.2/Result of merge/-kb/TMY_BRANCH
/test9.txt/1.1.4.2/Result of merge+Fri Apr  8 20:18:16 2005/-kk/TMY_BRANCH

$ cvs -nq up  WORD.tar test9.txt
M WORD.tar
C test9.txt

$ ls -la .#WORD.tar.1.1.4.2 WORD.tar test9.txt
-rw-r--r--    1 userid ftp            50 Apr  8 16:18 test9.txt
-rw-r--r--    1 userid ftp         40960 Apr  8 16:18 WORD.tar
-rw-r--r--    1 userid ftp         10240 Apr  8 16:17 .#WORD.tar.1.1.4.2

$ cvs version
Client: Concurrent Versions System (CVS) 1.11.1p1 (client/server)
Server: Concurrent Versions System (CVS) 1.11.17 (client/server)
-----------------------------------------------------

When the update command is run it says that there is a conflict in the
WORD.tar (binary file). But when I ran cvs -nq update after the
changes are merged it shows that the Binary file has no conflicts. It
is supposed to mark it with a 'C' right?

Thanks
SG