I'm on Mac OS X 10.7.1 (Lion). I just downloaded a fresh copy of Eclipse IDE for Java EE Developers, and installed the Mercurial plugin. I get the following error message:

abort: couldn't find mercurial libraries in [...assorted Python directories...].

I do have Python 2.6.1 and 3.2.1 installed. I also have a directory System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7, which is on the list of places it looked for the Mercurial libraries. hg -y debuginstall gives me the same message.
What are these libraries named, where is Eclipse likely to have put them when I installed the plugin, and how do I tell Eclipse where they are (or where should I move them to)?
Thanks, Dave
Full error message follows:

abort: couldn't find mercurial libraries in
  [/usr/platlib/Library/Python/2.6/site-packages /usr/local/bin
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python27.zip
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-darwin
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-mac
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-mac/lib-scriptpackages
  /System/Library/Frameworks/Python.framework/Versions/2.7/Extras/lib/python
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-tk
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-old
  /System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-dynload
  /System/Library/Frameworks/Python.framework/Versions/2.7/Extras/lib/python/PyObjC
  /Library/Python/2.7/site-packages] (check your install and PYTHONPATH)
I had two installation of mercurial in mac. 
One was installed directly and another using macport.
Removing the direct installation solved the problem.

Remove the direct installation using 
easy_install -m mercurial 
Update "Mercurial Executable" path to "/opt/local/bin/hg"
Eclipse->Preference->Team->Mercurial->
Restart eclipse
Mercurial plugin for Eclipse can't find Python--how to fix?