hgwebdir: do not walk up the given path looking for a repository. It is there or it isn't.
#!/bin/sh
mkdir a
cd a
hg init
echo 123 > a
hg add a
hg commit -m "a" -u a -d "1000000 0"
cd ..
mkdir b
cd b
hg init
echo 321 > b
hg add b
hg commit -m "b" -u b -d "1000000 0"
hg pull ../a
hg pull -f ../a
hg heads