I love that it's open-source software; makes collaboration and version control simple to use for even nontechnical users. The UI isn't as slick or polished as some other DVCSs. You have to download each file you want before checking them in - not ideal if your team keeps large files locally (e.g., presentations). In addition, there are no builtin hooks for continuous integration/deployment so we had to write our own scripts to do this instead. We're using mercurial extensively at work now and we've been able to solve all but one problem with its capabilities.