I had the same error with the web2py.exe version of web2py

I found the versioning button works ok though from the python source 
version (see 
http://ochiba77.blogspot.co.uk/2011/10/how-to-install-web2py-from-source.html
 )



On Tuesday, August 28, 2012 4:59:25 PM UTC+1, Sergi Pons Freixes wrote:
>
> Hi all,
>
> I have mercurial installed:
>
> # dpkg -l |grep mercurial                                                    
> ii  mercurial                          1.6.4-1                      scalable 
> distributed version control system                                            
>                                              
> ii  mercurial-common                   1.6.4-1                      scalable 
> distributed version control system (common files)
>
> And the Versioning button is shown on the admin interface, but when I click 
> on it I got the message: "Sorry, could not find mercurial installed". 
> According to the book, it should find it automatically. Which step I am 
> missing?
>
>
>

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