--- a/mercurial/encoding.py	Sun Nov 28 18:21:47 2010 -0600
+++ b/mercurial/encoding.py	Mon Nov 29 10:13:55 2010 +0100
@@ -95,7 +95,7 @@
     for e in ('UTF-8', fallbackencoding):
         try:
             u = s.decode(e) # attempt strict decoding
-            if u == 'UTF-8':
+            if e == 'UTF-8':
                 return localstr(s, u.encode(encoding, "replace"))
             else:
                 return localstr(u.encode('UTF-8'),