I cannot get the new mergetool feature of Sublime Merge 1107 behave well under Windows.
When specifying smerge as the difftool in .gitconfig like this:
cmd = 'C:/Program Files/Sublime Merge/smerge.exe' mergetool \"$LOCAL\" \"$REMOTE\"
Sublime Merge seems to prefix $LOCAL with the repository folder, which does not work since $LOCAL is an absolute filepath to a temporary file starting with C:\