Hmm, that's very peculiar. Here's what you should do:

hg clone -r 32 busted-repo clean-repo

That will copy all the changesets up to the broken one. Then you can either copy
your working dir changes over to the clean repo, or you can do a shell game in
the busted repo by moving .hg to .hg-busted, and copying .hg from the clean repo.