diff -r a7b61c3b0f93 -r d1ce5461beed mercurial/localrepo.py
--- a/mercurial/localrepo.py	Fri Dec 08 23:33:32 2006 +0100
+++ b/mercurial/localrepo.py	Fri Dec 08 22:01:05 2006 -0200
@@ -72,6 +72,10 @@
         self.manifest = manifest.manifest(self.sopener, v)
         self.changelog = changelog.changelog(self.sopener, v)
 
+        fallback = self.ui.config('ui', 'fallbackencoding')
+        if fallback:
+            util._fallbackencoding = fallback
+
         # the changelog might not have the inline index flag
         # on.  If the format of the changelog is the same as found in
         # .hgrc, apply any flags found in the .hgrc as well.