Song titles must match in order for songs to be considered the same on each device. I'm guessing what is happening is that, in the example you provided, the server is creating new songs with the correct titles, and ignoring the songs on the client with the wrong titles (unless you check "Delete Songs" in which case it would delete the songs with the wrong titles). Does that seem plausible based upon what you are seeing? I also have code in place where it will look for a matching song based upon database ID and creation date if no matching title is found. This handles the case where the song was renamed. So your song may be correctly merged, but the title won't be fixed in that case.
Mike
Mike