Solved!
It was related to my proxy configuration after all. Setting the no_proxy environment variable fixed this issue for me. I see this is a corner case but just in case someone else runs into it, this is a summary of what I did.
If your network uses a http proxy who do not answer to local hostnames requests and you have setup the http_proxy environment variable. In order to get a local toolshed going, you will need to do two things.
- Add to ~/.hgrc: [http_proxy] no = [comma separated list of hostnames for your local toolsheds. Note: domain regex won't work]
- Set no_proxy environment variable. For bash in Redhat/CentOS I like adding to /etc/profile.d/custom.sh: export no_proxy=[comma separated list of local domains]
Hope it helps, Carlos