> As I recall it, the performance penalty is payed by parsing the manifest
> file, not by searching directories. Thus clever selection of directories
> would not improve performance for visible overlays, but it would allow finer
> granularity over when to show overlays.

I see. Good to know.

(So, the sometimes quite long delays I have on my rather old 700 MHz PIII 
are actually due Python's execution of THG, followed by the manifest 
scanning, instead of Window's explorer overlays.)

But still I could imagine that there might be a little gain if Windows 
would not have to identify possible Mercurial repositories in every folder 
displayed in its views. But still, probably it doesn't make a big 
difference since I have TortoiseCVS and TortoiseSVN installed as well...

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