Why can’t my TeamCity installation work with Mercurial when it works fine from the command line?

I am having trouble adding a Mercurial VCS root to a  TeamCity Project. When I enter the repository information and click  'Test Connection' the pop-up says 'Connection Failed', shows me a  message 'stderr: abort: couldn't find mercurial libraries in [...',  ending with the message '(check your install and PYTHONPATH)'.

I am able to copy and paste the command from the error pop-up to the  command line and mercurial works as expected. I have  read that TeamCity should have no problem using Mercurial if it is  working from the command line.

I have attempted to export the PYTHONPATH environment variable  directly in the startup.sh and the catalina.sh with no change after  restarting TeamCity. I have also been very careful to ensure the hg  executable used by TeamCity is the same one being used on the command  line.

What am I missing?

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This seems to be a bug in the Mercurial plugin, please watch/vote: http://youtrack.jetbrains.net/issue/TW-12785
The patch will be attached to this issue.


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