How should the Swiss international airlines flight 850 METAR reports be interpreted?
Can someone clarify?


I can try to clarify the METAR report:

From the Wikipedia source link on METAR:


EDDT:  METAR for Tegel Airport
VRB01KT: Wind variable at 1 knot (1.9 km/h)
9999: visibility in excess of 10 kilometres (5.4 nmi)
FEW040CB: few clouds at 4000 ft. including cumulonimbus
SCT120:  scattered clouds at 12000 ft
BKN260:  broken clouds at 26000 ft 
29/17: temperature 29 degrees Celsius, dew point 17 degrees Celsius
Q1002: current altimeter setting (in QNH) is 1002 hPa 
A2959 0998 2947: current altimeter setting 29.59 in.Hg, falling to 998 HPa, 29.47 in.Hg. 
TEMPO: Temporarily


27025G55KT: Temporarily winds from 270° at 25 knots (46 km/h), gusting to 55 knots (102 km/h)
2000 +TSRA: visibility 2000 meters (1.1 nmi)
+TSRA: heavy thunderstorm and rain
BKN009: broken clouds at 900 ft
BKN015CB: broken clouds at 1500 ft including cumulonimbus

COMMENTS: OCNL LTNG AND CB SW OF STN: Occasional lightning and cumulonimbus clouds south west of the station



  Why are there multiple mentions of the same types of clouds? 


The TEMPO group is used for any conditions in wind, visibility, weather, or sky condition which are expected to last for generally less than an hour at a time (occasional), and are expected to occur during less than half the time period.


  Are they talking about different height/direction?


The Sky Condition (i.e.:FEW040CB SCT120 BKN260 ) reports the sky coverage and is given for different height, the following three-digit height is given in hundreds of feet.

For further clarification of METAR convention I find this useful!


  My understanding is that NOSIG means the weather is not expected to significantly change in the next two hours. 


Correct, NOSIG stands for NO SIGnificant change, doesn't mean that the weather will not change!