Creating a project cannot find hg.exe even though the command is on the path

I have installed Upsource on a Windows server.
When I click "test connection" after selecting Mercurial as my VCS and entering my repository URL, I receive the following error:

Test VCS connection failed.
Cannot find mercurial executable at path 'hg'

Mercurial works if I type 'hg' at a windows prompt, any suggestions on how I work around this issue?


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Installing new HG version resolved the issue.


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