Managing Django project with mercurial and PyCharm - choosing root folder
I assume you use Django >= 1.4. When you create a Django project using this Django version, by default it creates a folder with manage.py and inside it a subfolder with settings.py.
What you should do is to use the folder with manage.py as the root for your PyCharm project and Mercurial repo. This way all your applications will be in the project and repo.
If you don't want your PyCharm settings to be tracked by Mercurial, do not forget to add .idea folder to your .hgignore file.
What is best/preferred/right/conventional way: 
- Root of repository and PyCharm project = Django project folder with settings.py
- Root of repo and PyCharm project is the parent directory of Django project.
Never used Hg before, and this simple problem is hinder me.