Redmine

I'm setting up a Windows Server 2008 Standard with Redmine and Mercurial. (Don't Mock Me it's what the client wants I realize there is far more doumentation about doing this on Linux)

So anyway...Now that your laughter has subsided.

My first question is.. Does the HG have to hosted from the "localhost" or can I test redmine by having is look at an already existing HG such as http://selenic.com/repo/hg#stable

If so then why am I getting "The entry or revision was not found in the repository"
does Redmine use SVN by default? Do I need to change something to use Mercurial?

I also know that I need to change the path settings in the Mercurial_adapter.rb but I don't understand how this path setting works for mercurial when using a windows server... I think i'm looking at the right thing

HG_BIN = "hg"
TEMPLATES_DIR = File.dirname(FILE) + "/mercurial"
TEMPLATE_NAME = "hg-template"
TEMPLATE_EXTENSION = "tmpl"

Do i need to set the "File.dirname(FILE)" somewhere else. I read thruough the wiki addressing this for SVN found here... http://old.nabble.com/problem-in-running-svn-command-through-php-on-CentOS-td14436616.html
So i think i'm on the right track.. just need the particulars.

Can anyone give me some insight on this issue?

Go easy on me I'm a Newbie getting is feet wet in IS field.