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Re:Dropbox launches (YC summer 07) by pchristensen on Tuesday March 11, 2008 @04:18PM (#134589)
From FAQ:

# How does Dropbox handle editing conflicts?

If two users share access to a file (either through sharing the same account or within a shared folder) and a conflict between their two versions appears, the Dropbox server retains only the first version to fully make it to the server.

The machines still in conflict with the server will get copies of the file with a suffix like "(Drew's local copy 1-25-2008)." Users can then manually fix the conflict and remove the extra copies of the conflicted file.

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