--- a/mercurial/hg.py	Wed Jun 18 00:28:40 2008 -0500
+++ b/mercurial/hg.py	Wed Jun 25 10:49:18 2008 +1000
@@ -240,7 +240,8 @@
         if dest_repo.local():
             fp = dest_repo.opener("hgrc", "w", text=True)
             fp.write("[paths]\n")
-            fp.write("default = %s\n" % abspath)
+            # percent needs to be escaped for ConfigParser
+            fp.write("default = %s\n" % abspath.replace('%', '%%'))
             fp.close()
 
             if update: