man 5 hgrc implied you need to use external tools to do CRLF translation.
This is no longer true; win32text provides a much better in-process alternative.
merging baz and foo
1 files updated, 1 files merged, 0 files removed, 0 files unresolved
(branch merge, don't forget to commit)
1 files updated, 0 files merged, 1 files removed, 0 files unresolved
merging foo and baz
1 files updated, 1 files merged, 0 files removed, 0 files unresolved
(branch merge, don't forget to commit)
initializing destination new repository
scanning source...
sorting...
converting...
4 add foo bar
3 change foo
2 make bar and baz copies of foo
1 merge local copy
0 merge remote copy
comparing with ../orig
searching for changes
no changes found