I can confirm this bug, too. I run the latest Ubuntu 10.10 with the 
ground-control 1.6.6-1 from the repositories.
Same error message, mercurial was installed all the time.

Running
touch ~/groundcontrol.log
nautilus --quit; nautilus --no-desktop

Lead to hundreds of nautilus windows opening and pestering my taskbar, but the 
windows were not clickable nor alt-tab helped reaching them. Console output was:
jan@jan-x61:~$ touch ~/groundcontrol.log
jan@jan-x61:~$ nautilus --quit; nautilus --no-desktop
Initializing nautilus-image-converter extension
Initializing nautilus-gdu extension
Bazaar nautilus module initialized
Initializing groundcontrol-1.6.6 extension
Initializing nautilus-dropbox 0.6.7
sys:1: GtkWarning: IA__gtk_container_foreach: assertion `GTK_IS_CONTAINER 
(container)' failed


** Changed in: groundcontrol
       Status: New => Incomplete

** Changed in: groundcontrol
       Status: Incomplete => Confirmed

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https://bugs.launchpad.net/bugs/627172

Title:
  selected branch fails to download

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