Merging Mercurial Repositories

[Stephen Rasku]

I am considering merging two Mercurial repositories.  They would be
sub-directories in the new repository.  This is what I am thinking of
doing:

1. Creating a new sub-directory, subdir1, in repo1 and hg mv all the
files down one-level into this sub-directory.
2. Copy working directory from repo2 into new subdirectory, subdir2 in
repo1.  I don't need to keep any history since this repo only has a
single revision.
3. Commit and push.

Is there a better way to do this?  I can't use sub-repos because we
are using Hg 1.2.1.  We can't easily upgrade to 1.3 since our
development machines only have Red Hat 4 and Python 2.3.4 installed.

...Stephen