diff --git a/mercurial/hgweb/hgwebdir_mod.py b/mercurial/hgweb/hgwebdir_mod.py
--- a/mercurial/hgweb/hgwebdir_mod.py
+++ b/mercurial/hgweb/hgwebdir_mod.py
@@ -146,8 +146,9 @@ class hgwebdir(object):
                 u = ui.ui(parentui=parentui)
                 try:
                     u.readconfig(os.path.join(path, '.hg', 'hgrc'))
-                except IOError:
-                    pass
+                except Exception, e:
+                    u.warn(_('error reading %s/.hg/hgrc: %s\n' % (path, e)))
+                    continue
                 def get(section, name, default=None):
                     return u.config(section, name, default, untrusted=True)