Since Unity 4.3 you also have to enable External option from preferences, so full setup process looks like:
External
option in Unity ? Preferences ? Packages ? Repository
Hidden Meta Files
in Editor ? Project Settings ? Editor ? Version Control Mode
Force Text
in Editor ? Project Settings ? Editor ? Asset Serialization Mode
File
menuNote that the only folders you need to keep under source control are Assets
and ProjectSettigns
.
More information about keeping Unity Project under source control you can find in this post.