Trying to resolve a conflict in subclipse

I'm using subversion for version control and I removed a file from the subversion repository and then also from the file system. Now when I try to synchronize a conflict comes up (see screenshot) and I can't figure out how to resolve it.


When I try to open up the Compare Editor a null pointer exception is thrown.

I'm using subclipse version 1.6.17 and google code as my svn repository (not sure what the version is).