Major Changes

• experimental support for sub-repositories
• Python 2.3 is no longer supported; now requires Python 2.4-2.6

Commands

• merge: add -P/--preview option
• update: don't unlink added files when -C/--clean is specified
• update: added -c/--check option to abort on local changes
• update: allow merges going backwards
• push: improved handling of named branches
• branches/heads: add a -c/--closed option to show closed branches
• help: new extensions topic

General

• add patch.eol config setting to work with cross-platform patches
• fixed support for SSL through proxies
• add ability to load hooks from arbitrary Python modules
• hide passwords for HTTP repositories in error and log output
• fix Python 2.6 support in the Windows installer
• add mechanism for specifying HTTP authentication details in hgrc
• prompts and choices are now shown even in non-interactive mode
• performance improvements, especially on Windows
• much improved zsh completion
• improved Danish, Japanese, Italian and simplified Chinese translations
• new German, French, Greek, Brazilian Portuguese and traditional Chinese translations

Web interface

• read configuration data from webdir configs
• add branches page to hgweb
• pluggable templater engine support
• refresh hgwebdir configuration periodically
• let web.encoding override ui.encoding setting
• deal with dicts/lists like webdir config paths

I'm quite stoked about this release :) For additional information, please check the project's wiki.