diff -r f3058dd05281 -r 0935ff767285 mercurial/url.py
--- a/mercurial/url.py	Fri Dec 31 17:09:38 2010 -0600
+++ b/mercurial/url.py	Wed Jan 05 15:56:03 2011 +0100
@@ -530,6 +530,8 @@
         def connect(self):
             if hasattr(self, 'ui'):
                 cacerts = self.ui.config('web', 'cacerts')
+                if cacerts:
+                    cacerts = util.expandpath(cacerts)
             else:
                 cacerts = None