diff -r 14b703252f14 -r 346fafc144fc mercurial/util.py
--- a/mercurial/util.py	Thu Feb 12 09:36:15 2009 -0700
+++ b/mercurial/util.py	Wed Mar 04 17:02:16 2009 -0600
@@ -822,7 +822,7 @@
         if '.hg' in path.lower():
             lparts = [p.lower() for p in parts]
             for p in '.hg', '.hg.':
-                if p in lparts[1:-1]:
+                if p in lparts[1:]:
                     pos = lparts.index(p)
                     base = os.path.join(*parts[:pos])
                     raise Abort(_('path %r is inside repo %r') % (path, base))