Let us go straight to work without wasting your time.(I had wasted a lot of time when I started)
This is your first time to using any sort of version control system and you do not want to read ugly man pages (in fact most of the man pages were pieces of crap written in 1960's or 70s).
First create an account with Google Code (which you might have done that is why you are reading this guide)
Then you run following command in an empty subdirectory
hg clone https://yourproject.googlecode.com/hg/ yourproject
you will see a directory yourproject now.
Inside this you will see a .hg directory which has hgrc file.
vi testproject/.hg/hgrcis the file you might have been wondering on internet as how to use.
Now copy your code in what ever location from your laptop to this directory
bash$ cp -rv /whereever/your/code/on/laptop/ testproject/
hg add ./*
and then hg push this the command that you should do so that the code on your laptop can be seen on internet on Google code.
Right upto here if every thing was Ok then
hg commit -Aafter some conversation with this command you should be fine.
Here is a good link
which told me when you run
hg push then the password that you will enter is not the same as the password you use on gmail.
excerpts from the above link
"This will prompt you for a user name and password, the password IS NOT YOUR DEFAULT PASSWORD. Go to your accounts hosting page to find it." the link to find your password ishttps://code.google.com/hosting/settings
In case you enter user gmail username password you will get following error
abort: HTTP Error 403: Forbidden
Now things should work well for you.
Let me know via your comments if you know any more information.
Most of the guides I read were highly time consuming and did not talked to the point things.