Is it possible to merge multiple records at once as within the API? I seem to be having issues with this.

http://www.salesforce.com/us/developer/docs/api/index_Left.htm#CSHID=sforce_api_calls_merge.htm|StartTopic=Content%2Fsforce_api_calls_merge.htm|SkinName=webhelp

IE: potential to do 200 merges within a batch execute of a trigger/class/method/extension and not have to waste your precious DML statements for multiple merges limited to governor limits.