diff -r a1ecef497721 -r 99470ae6b424 mercurial/hg.py
--- a/mercurial/hg.py	Tue Jun 21 18:04:25 2005 -0800
+++ b/mercurial/hg.py	Tue Jun 21 18:29:52 2005 -0800
@@ -358,6 +358,9 @@
                 path = p
             self.path = os.path.join(path, ".hg")
 
+            if not create and not os.path.isdir(self.path):
+                raise "repository %s not found" % self.path
+
         self.root = path
         self.ui = ui