Hi, I like your patch in principle, and it should be @{name|escape}@ for consistency.

But one thing, filenames in Mercurial are bytes, thus @{name|escape}@ can contain invalid UTF-8 sequence for non-ASCII & non-UTF-8 filenames. It may confuse REXML parser.
The following entries have the same issue: @file, file_mod, file_add, file_del and source@ .

See also #2664
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I merged "issue-2664-0.9-stable-2010-04-11.patch":http://www.redmine.org/attachments/3544/issue-2664-0.9-stable-2010-04-11.patch of #2664 and "latest-changesets-improvements-4.diff":http://www.redmine.org/attachments/4936/latest-changesets-improvements-4.diff of #6159 excluding Subversion.
And I updated Mercurial test repository and add unit tests and functional tests.
And I attach images.

This patch fixes #2664, #5408, #3449 and #3567.

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I confirmed unit and functional tests pass for latin-1 encoding test repository on my Japanese(CP932) Windows Vista.

I post some images.

<pre>
$ hg --version
Mercurial Distributed SCM (version 1.7.2)
</pre>

<pre>
$ RAILS_ENV=test ruby script/about
r:/Ruby186/lib/ruby/gems/1.8/gems/rails-2.3.5/lib/rails/gem_dependency.rb:119:Warning: Gem::Dependency#version_requirements is deprecated and will be removed on or after August 2010. Use #requirement

About your application's environment
Ruby version 1.8.6 (i386-mingw32)
RubyGems version 1.3.7
Rack version 1.0
Rails version 2.3.5
Active Record version 2.3.5
Active Resource version 2.3.5
Action Mailer version 2.3.5
Active Support version 2.3.5
Application root R:/work/hg-workdir/redmine-trunk-my-work
Environment test
Database adapter sqlite3
Database schema version 20101115000000
Loaded suite script/about
Started

Finished in 0.0 seconds.

0 tests, 0 assertions, 0 failures, 0 errors

</pre>

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I confirmed to fix copying UTF-8 named file.
I attach images.
Non UTF-8 named file is #2664 issue.
So, I close this issue.
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relates,Closed,2664,Mercurial: Repository path encoding of non UTF-8 characters