Do you have a dedicated server for the code repository?
I am trying to convince my colleagues to switch from SVN to Git or Mercurial in order to make merging less painful and I am wondering if it's necessary to have a dedicated server for this (currently we don't). Also, there's another thing — is any of the Eclipse plugins for Git or Mercurial stable and compliant enough to use in production?
We have a dedicated CNAME. :) That is, 'svn.example.com' points to a real, physical machine. This lets us move it later without everyone having to check out a new copy or cause major interruption.
Now, that said, I would LIKE a dedicated box, even if it is a full-on virtual host. I want that privilege separation there between (say) a general purpose HTTP server and my source code. If someone defaces my company's web site, sure, it's embarrassing, but if someone compromises my source tree, at the source itself... It'd be a lot of man-hours before I could trust that source tree again.
Windows Explorer, Eclipse and Visual Studio plugins (at least for Mercurial) are pretty mature now to be use on a daily basis. Of course, there are some bugs left, but as their development are open, you can easily contribute.
I dont have experience with Mercurial, but for Git, plugins for Eclipse are not ready for production (at least not in my team). If you and your team are not afraid of command line, it might work. But honestly, a good graphical merge tool (like the one included in Eclipse / SVN / CVS) makes merges much easier than Git with command line only.
I would have a try at Git on a real enterprise project only if the whole team knows about DVCS AND you have a team that needs to work in a distributed fashion. If you simply need finer granularity on your commits, use git-svn and dont force everybdy to use DVCS.