I use Subversion, Sublime and Tortoise SVN and Windows.  I have no plan on chaning to Git (just to get that out there).  

That being said, I am in the process of creating a version control structure for our environment.  Being fairly new to branching and merging I am looking for some feedback.

Here is the directory structure that I have planned.  

Salesforce
    trunk
    branches
            
From what I can tell I need to commit my production code to trunk (stored in src)

Salesforce
    trunk
        config
        src
    branches
        
Then, when I wish to work on a project, I need to create a branch into the branch directory (which makes a copy of everything from the trunk)

Salesforce
    trunk
        config
        src
    branches
        project1
            config
            src
            
I then work in the project1 directory on my local computer.
When I have a change that is completed I then commit it to the project1 branch.
When my code is ready for production I then have to perform a merge to the trunk.  This is where I am having issues.  From what I have seen I have to go to the local copy of the trunk and do a merge and specify the source as the location in the branch of my changed file.  I cannot get it to merge this brand new file into the trunk.  Any ideas of what I am doing wrong?