This is just a note to help those people looking for help on this and hopefully prevent some banging of heads into walls.
To use bookmarks fully with TeamCity, you need TeamCity 8 and Mercurial 2.4 installed on the server.
New installations shouldn’t have a problem, but if you’ve upgraded to TC8, then do yourself a favour and upgrade your Mercurial as well.
If you have an old version of Mercurial, you may see an exception like this if you try to set your default branch to be a bookmark.
jetbrains.buildServer.vcs.VcsRootVcsException: Cannot find revision of the default branch '<bookmark name>'
You also won’t be able to select any branches in the custom run dialog.
It will be very frustrating. :)
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