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Install Mercurial using the virtualenv tool that is outlined in the Installing Django documentation, but replacing "django" with "mercurial". It is recommended that you create a separate instance/virtual host for running a mercurial server to isolate the environment.
Once installed you'll need to create a ".wsgi" script that looks something like:
...
Checking back in the web interface you can verify that the change has been committed.
You can also request that kproxy be enabled for your Mercurial server.