How do you configure it to ignore files?

Ignore is configured in a normal text file called .hgignore in the root of your repository. Add it just like a normal file with:

hg add .hgignore

There are two syntax options available for file matching, glob and regexp. glob is unix-like filename expansion and regexp is regular expressions. You activate each by adding syntax: glob or syntax: regexp on a line by itself. All lines following that will use that syntax, until the next syntax marker. You can have as many syntax markers as you want. The default syntax is regexp, so if you only use regexp you don't need any syntax marker.

You can add comments with #

Example:

# python temporary files
syntax: glob
*.pyc

#editor autosaves
*~

# temporary data
syntax: regexp
temp

Ignore only applies to unmanaged files (i.e. files that are not already checked in). To ignore files that are under version control, you can use the switches -I and -X.

One way is to just leave merged feature branches open (and inactive):

$ hg up default
$ hg merge feature-x
$ hg ci -m merge

$ hg heads
    (1 head)

$ hg branches
default    43:...
feature-x  41:...
    (2 branches)

$ hg branches -a
default    43:...
    (1 branch)

Another way is to close a feature branch before merging using an extra commit:

$ hg up feature-x
$ hg ci -m 'Closed branch feature-x' --close-branch
$ hg up default
$ hg merge feature-x
$ hg ci -m merge

$ hg heads
    (1 head)

$ hg branches
default    43:...
    (1 branch)

The first one is simpler, but it leaves an open branch. The second one leaves no open heads/branches, but it requires one more auxiliary commit. One may combine the last actual commit to the feature branch with this extra commit using --close-branch, but one should know in advance which commit will be the last one.

Update: Since Mercurial 1.5 you can close the branch at any time so it will not appear in both hg branches and hg heads anymore. The only thing that could possibly annoy you is that technically the revision graph will still have one more revision without childen.

Update 2: Since Mercurial 1.8 bookmarks have become a core feature of Mercurial. Bookmarks are more convenient for branching than named branches. See also this question:

• Mercurial branching and bookmarks