Check for parent/mod as well as parent.mod in findext. Debian/Ubuntu ship a system-wide hgrc that loads extensions using the syntax hgext/extension=, rather than hgext.extension=. Although the extensions work correctly, hg help <extension> doesn't understand this form without this patch.

#!/bin/sh

hg init
python -c 'print "confuse str.splitlines\nembedded\rnewline"' > a
hg ci -Ama -d '1 0'
echo clean diff >> a
hg ci -mb -d '2 0'
hg diff -r0 -r1