Redmine

I'm trying to add my mercurial repo to redmine. Redmine version is 1.0.2 and I upgraded hg to 1.8.1.

Both of them are hosted on Linux. Redmine is hosted on apache+passenger. Apache is running under apache user.

Mercurial's repo is on /home/hg/rep/repo-name. A hg user is owner of this folder, hg group is a group owner. apache is a member of hg.

But after I add /home/hg/rep/repo-name in redmine project settings as root directory, I got an error viewing repository: "The entry or revision was not found in the repository."

What's done wrong?