1. Local repository has been created by cloning remote repo.
2. Right click -> Refactor -> Move to new folder.
Enter new location. Move is successful.
3. Team -> Synchronize for the project.
Error occurs: Process start failed: C:\old_location\hg -y status -marduc
Cannot run program "C:\HgExecutableFolder\hg.exe" (in directory "C:\old_location"): CreateProcess error=267, The directory name is invalid
MercurialEclipse should use the repository from new location.
There may be other issues that don't work neither. Maybe shelving, unshelving etc. that depends on location and writes it down somewhere.
MercurialEclipse version 1.7.1 Eclipse: Helios JEE, OS: XP