mercurial/discovery.py

--- a/mercurial/discovery.py	Fri Jul 06 14:12:42 2012 -0500
+++ b/mercurial/discovery.py	Fri Jul 13 21:46:53 2012 +0200
@@ -169,7 +169,7 @@
 
         # 2. Check for new branches on the remote.
         if remote.local():
-            remotemap = phases.visiblebranchmap(remote)
+            remotemap = phases.visiblebranchmap(remote.local())
         else:
             remotemap = remote.branchmap()
         newbranches = branches - set(remotemap)