diff -r db3c1ab0e632 -r ab668c92a036 mercurial/hg.py
--- a/mercurial/hg.py	Mon Jun 15 02:45:38 2009 -0500
+++ b/mercurial/hg.py	Mon Jun 15 02:45:38 2009 -0500
@@ -297,6 +297,8 @@
             fp.write("default = %s\n" % abspath)
             fp.close()
 
+            dest_repo.ui.setconfig('paths', 'default', abspath)
+
             if update:
                 dest_repo.ui.status(_("updating working directory\n"))
                 if update is not True: