Skipped obstructing working copy
this means that there’s a working copy folder in the way: your update wants to add a folder with name ‘project’, but you already have a versioned folder ‘project’ in your working copy.
Maybe you moved that folder from another working copy? Or that folder is its own working copy (if it has the hidden .svn folders then it’s an independent, separate working copy).
To resolve:
move the folder out of your working copy (or just delete it). Then run update again. The update will fetch a folder with the same name again. But it might not be the same as you had – that’s why I recommend that you move the folder and delete it only after checking that the updated folder is identical with the original folder.