hg4idea update path not found

Hi, cannot make hg4idea work properly.
I've created mercurial repository from project folder and setup mercurial as
vcs for thre root project folder (containing .hg)
Comm works. Update doesn't. The error message is "Update path not found".
TortoiseHG has no problems though.
But...if i clone the repository making "branch"-project - the update
function works there properly. can't figure out the
difference in settings between parent and child projects.

P.S. file history seems to do nothing at all

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