diff -r 0c2b443fb3c3 -r 0d36de68669c mercurial/hg.py
--- a/mercurial/hg.py	Thu Feb 21 23:00:50 2008 +0100
+++ b/mercurial/hg.py	Fri Feb 22 21:58:15 2008 +0100
@@ -119,6 +119,8 @@
         ui.status(_("destination directory: %s\n") % dest)
 
     def localpath(path):
+        if path.startswith('file://localhost/'):
+            return path[16:]
         if path.startswith('file://'):
             return path[7:]
         if path.startswith('file:'):