Why is it you cannot merge course when Point 1 is involved? I currently have three line segments whose courses I would like to merge but I cannot because Pt. 1 is apart of that merge course.
Please confirm that you are using part of the functionality for the Add-in called ParcelEditorUtils, and that you are using the version 1.1 of that Add-in, dated 4/09/2012: [ATTACH=CONFIG]17100[/ATTACH]
If so, we are aware of something similar to what you describe, but it's not certain if it's the same. That portion of the add-in was written to merge lines in the grid only if they are in a block of contiguous rows. So in the case that you describe, where you try to do the merge, if the row in the grid is the first row (holding point 1), and the other 2 rows are lower down in the grid, then the merge will do nothing.
Does this match your experience? Do you make frequent use of this Add-in's function for merging lines in the grid? Note that at 10.1 there is a Merge Courses tool: [ATTACH=CONFIG]17102[/ATTACH]
More information about merging courses at 10.1 here.