Setting up a Mercurial Server using IIS 7

If you need to setup a central mercurial server, follow these steps.

http://www.sjmdev.com/blog/post/2011/03/30/setting-mercurial-18-server-iis7-windows-server-2008-r2.aspx

The only thing I would advice against would be using the re-write module.  It has a query string length limitation of 2050 characters.  Mercurial uses, in my opinion, the query string in a bad way when pushing changesets.  It really should use the POST for any large amount of data, but it uses the query string currently for some part of the POST.  This causes IIS to return a 404.  The limitation is easily avoided by not using the rewrite module.  You just have to deal with ugly URLs.