platform: Windows XP (Traditional Chinese version)
how to reproduce:
Create a directory which contains Chinese characters.
In the directory, init the repo using TortoiseHG 1.9 with Mercurial 1.7.2
The dialog contains invalid encoding, as attachment issue-29.png
Press "Create" button, error message dialog appeard.
Thanks for your help. :) Looking forward to see the landing of TortoiseHG 2.0!!