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.
#!/bin/sh
# Tests some basic hgwebdir functionality. Tests setting up paths and
# collection, different forms of 404s and the subdirectory support.
mkdir webdir
cd webdir
hg init a
echo a > a/a
hg --cwd a ci -Ama -d'1 0'
hg init b
echo b > b/b
hg --cwd b ci -Amb -d'2 0'
hg init c
echo c > c/c
hg --cwd c ci -Amc -d'3 0'
root=`pwd`
cd ..
cat > paths.conf <<EOF
[paths]
a=$root/a
b=$root/b
EOF
hg serve -p $HGPORT -d --pid-file=hg.pid --webdir-conf paths.conf \
-A access-paths.log -E error-paths-1.log
cat hg.pid >> $DAEMON_PIDS
echo % should give a 404 - file does not exist
"$TESTDIR/get-with-headers.py" localhost:$HGPORT '/a/file/tip/bork?style=raw'
echo % should succeed
"$TESTDIR/get-with-headers.py" localhost:$HGPORT '/?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT '/a/file/tip/a?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT '/b/file/tip/b?style=raw'
echo % should give a 404 - repo is not published
"$TESTDIR/get-with-headers.py" localhost:$HGPORT '/c/file/tip/c?style=raw'
cat > paths.conf <<EOF
[paths]
t/a/=$root/a
b=$root/b
EOF
hg serve -p $HGPORT1 -d --pid-file=hg.pid --webdir-conf paths.conf \
-A access-paths.log -E error-paths-2.log
cat hg.pid >> $DAEMON_PIDS
echo % should succeed, slashy names
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/t?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/t/?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/t/a?style=atom' \
| sed "s/http:\/\/[^/]*\//http:\/\/127.0.0.1\//"
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/t/a/?style=atom' \
| sed "s/http:\/\/[^/]*\//http:\/\/127.0.0.1\//"
"$TESTDIR/get-with-headers.py" localhost:$HGPORT1 '/t/a/file/tip/a?style=raw'
cat > collections.conf <<EOF
[collections]
$root=$root
EOF
hg serve -p $HGPORT2 -d --pid-file=hg.pid --webdir-conf collections.conf \
-A access-collections.log -E error-collections.log
cat hg.pid >> $DAEMON_PIDS
echo % should succeed
"$TESTDIR/get-with-headers.py" localhost:$HGPORT2 '/?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT2 '/a/file/tip/a?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT2 '/b/file/tip/b?style=raw'
"$TESTDIR/get-with-headers.py" localhost:$HGPORT2 '/c/file/tip/c?style=raw'
echo % paths errors 1
cat error-paths-1.log
echo % paths errors 2
cat error-paths-2.log
echo % collections errors
cat error-collections.log