diff -r 5be041254a2e -r 1526ac765e29 mercurial/subrepo.py
--- a/mercurial/subrepo.py	Fri Aug 31 13:08:11 2012 +0200
+++ b/mercurial/subrepo.py	Tue Sep 04 15:50:42 2012 -0700
@@ -838,7 +838,7 @@
             name = ''.join(c.data for c
                            in e.getElementsByTagName('name')[0].childNodes
                            if c.nodeType == c.TEXT_NODE)
-            paths.append(name)
+            paths.append(name.encode('utf-8'))
         return paths
 
     def filedata(self, name):