2.0.4 upgrade breaks hg - 'hg status' failed with code 1

'hg status' failed with code 1:'Traceback (most recent call last):
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/hg_local", line 33, in <module>
    mercurial.util.setbinary(fp)
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 106, in __getattribute__
    self._load()
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 78, in _load
    mod = _hgextimport(_import, head, globals, locals, None, level)
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 47, in _hgextimport
    return importfunc(name, globals, *args)
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/util.py", line 69, in <module>
    statfiles = getattr(osutil, 'statfiles', platform.statfiles)
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 106, in __getattribute__
    self._load()
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 78, in _load
    mod = _hgextimport(_import, head, globals, locals, None, level)
  File "/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/demandimport.py", line 47, in _hgextimport
    return importfunc(name, globals, *args)
ImportError: dlopen(/Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/osutil.so, 2): Library not loaded: /System/Library/Frameworks/CoreGraphics.framework/Versions/A/CoreGraphics
  Referenced from: /Applications/SourceTree.app/Contents/Resources/mercurial_local/mercurial/osutil.so
  Reason: image not found

The /System/Library/Frameworks/CoreGraphics.framework does not exist on my Lion system.