Ok, figured this one out.
When freebsd-update tells you that it was unable to merge the given file automatically, you press Enter and then vi editor starts up. It will look similar to this:
http://pastebin.com/m2d366a61
In my case I wanted to keep my original /etc/hosts intact, so I deleted lines: 1 and everything after line 5 (5 included).
After that command :wq! saved the file and quit vi. .. on to the next file.
After all the files which freebsd-update wasn't able to merge automatically comes section witch automatic merges. freebsd-update will show you the file, lines prefixed with '-' are going to be removed and lines prefixed with '+' are going to be added.
If you are happy with the -/+ for given file then just answer 'Y'.
Quick vi howto:
- There are two modes, insert mode and command mode,
into insert mode you go by pressing key: i
to go back to command mode you pres ESC.
- To delete the line in vi, go to command mode
go to desired line with the cursor and press: dd
- To delete a single character in command mode press: x
(cursor should be on that character)
- To replace single character in command mode press: r
and then type new character
- some navigation(in command mode):
Next Page = CTRL + f
Previous Page = CTRL + b
- To exit vi and save changes(in command mode) type: :wq!
- To exit vi without saving changes(in command mode) type: :q!