Installing mercurial for hgwebdir on Mac OS X Server

[Eric Arseneau]

I just upgraded my Mac OS X Server to Snow Leopard and now hg is not  
working, getting an exception from web server about missing mercurial  
module.

I've tried to install via easy_install and port (did the upgrade they  
recommend) and neither of them seems to be installing the right parts  
to get the mercurial module to be visible.

I assume there is some python path element that needs to be set, or  
some source that needs to be placed in an appropriate place.

I can modify hgwebdir to import the directory where mercurial is, I  
think, however I would like to know what the right way to do this is.

Any recommendations on how I can fix this?