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.
adding a
adding b
adding dir.h/foo
adding t.h
adding t/b
adding t/e.h
adding t/x
hg locate a
a
locate succeeded
hg locate NONEXISTENT
locate failed
hg locate
a
b
dir.h/foo
t.h
t/b
t/e.h
t/x
hg locate a
hg locate NONEXISTENT
hg locate relpath:NONEXISTENT
hg locate
b
dir.h/foo
t.h
t/b
t/e.h
t/x
hg locate -r 0 a
a
hg locate -r 0 NONEXISTENT
hg locate -r 0 relpath:NONEXISTENT
hg locate -r 0
a
b
dir.h/foo
t.h
t/b
t/e.h
t/x
% -I/-X with relative path should work
hg locate
b
dir.h/foo
t.h
t/b
t/e.h
t/x
hg locate -I ../t
t/b
t/e.h
t/x
hg locate t/**
t/b
t/e.h
t/x
hg locate b
../b
../t/b
hg locate *.h
../t.h
../t/e.h
hg locate path:t/x
../t/x
hg locate re:.*\.h$
../t.h
../t/e.h
hg locate -r 0 b
../b
../t/b
hg locate -r 0 *.h
../t.h
../t/e.h
hg locate -r 0 path:t/x
../t/x
hg locate -r 0 re:.*\.h$
../t.h
../t/e.h