I've been trying to track down why I can't get anything from the toolshed installed and finally have it figured out. 

Whenever I tried to install anything I always got an Error with no explanation of what the error was.  After enabling Debug messages into the log file, I see the error is:

tool_shed.util.hg_util DEBUG 2014-12-22 14:47:48,910 Error cloning repository: httpsconnection instance has no attribute '_set_hostport'

I googled around and found out this is a known bug/issue with older version of Mercurial and was fixed in v3. 

I added a line to hg_util.py to see where it picks up hg.  Its using version 2.2.3.  Indeed, one of the eggs downloaded by Galaxy is mercurial-2.2.3. 

I have the newest version of mercurial installed in my site-packages folder but I guess that's not what galaxy wants.  So my question is, how do I get Galaxy to use the latest version of Mercurial?  And, Why did it download an older version?