[en] The fixed point resolution problem is solved for diagonal coset theories. The primary fields into which the fixed points are resolved are described by submodules of the branching spaces, obtained as eigenspaces of the automorphisms that implement field identification. To compute the characters and the modular S-matrix we use ''orbit Lie algebras'' and ''twining characters'', which were introduced in a previous paper. The characters of the primary fields are expressed in terms branching functions of twining characters. This allows us to express the modular S-matrix through the S-matrices of the orbit Lie algebras associated to the identification group. Our results can be extended to the larger class of ''generalized diagonal cosets''. (orig.)