From:
http://hivelogic.com/articles/converting-from-mercurial-to-git
Migrating
It’s a relatively simple process. First we download fast-export (the best way is via its Git repository, which I’ll clone right to the desktop), then we create a new git repository, perform the migration, and check out the HEAD. On the command line, it goes like this:
cd ~/Desktop
git clone git://repo.or.cz/fast-export.git
git init git_repo
cd git_repo
~/Desktop/fast-export/hg-fast-export.sh -r /path/to/old/mercurial_repo
git checkout HEAD
You should see a long listing of commits fly by as your project is migrated after running fast-export. If you see errors, they are likely related to an improperly specified Python path (see the note above and customize for your system).
That’s it, you’re done.