Fix default clone destination
The default clone wasn't working:
$ hg clone hg
abort: repository hg/.hg not found!
This was because we were creating the destination directory from the
default, then checking whether it existed to determine whether to
expand the path.
#!/bin/sh
hg init
echo a > a
hg add a
hg commit -m "test" -d "0 0"
hg history
hg tag -d "0 0" "bleah"
hg history
echo foo >> .hgtags
hg tag -d "0 0" "bleah2" || echo "failed"