If you are using the Forest extension, you need to ensure that your Mercurial installation enables it. Since the extension is not bundled with Mercurial, the Hudson plugin cannot simply use --config extensions.forest= to enable it. If it is impractical to enable the extension yourself in the Mercurial installation, you can instead specify a download location as a URL accessible to the Hudson master. Suggested values:
Official repository
http://hg.akoha.org/hgforest/raw-file/default/forest.py
"Crew" fork (known to work with new Mercurial releases)
http://bitbucket.org/pmezard/hgforest-crew/raw/default/forest.py