diff -r 21daee53c101 -r f254ab6207ae mercurial/subrepo.py
--- a/mercurial/subrepo.py	Tue Jan 22 14:33:17 2013 +0100
+++ b/mercurial/subrepo.py	Tue Nov 27 20:56:27 2012 -0500
@@ -264,6 +264,9 @@
             return repo.ui.config('paths', 'default-push')
         if repo.ui.config('paths', 'default'):
             return repo.ui.config('paths', 'default')
+        if repo.sharedpath != repo.path:
+            # chop off the .hg component to get the default path form
+            return os.path.dirname(repo.sharedpath)
     if abort:
         raise util.Abort(_("default path for subrepository not found"))