Backout ad09ce1d393c and replace ''' with """ to make some highlighting happy. I have tried Debian's default emacs and the current CVS version. Default emacs doesn't have highlighting enabled (and being emacs-illiterate I don't know how to enable it) and the CVS emacs' Python highlighting has no problems with ' characters here.

#!/bin/sh

hg init
echo "nothing" > a
hg add a
hg commit -m ancestor -d "1000000 0"
echo "something" > a
hg commit -m branch1 -d "1000000 0"
hg co 0
echo "something else" > a
hg commit -m branch2 -d "1000000 0"
hg merge 1
hg id
cat a
hg status