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Here follows a fully working configuration for mercurial's heweb.cgi based FQDN server:

UrlToolkit {
	ToolkitID = hg
	Match ^/hg(/static/*) Rewrite $1
	Match ^/$ Rewrite /hg
}

VirtualHost {
	Hostname = hg.example.com
	WebsiteRoot = /srv/vcs/hg
	AccessLogfile = /var/log/hiawatha/vhosts/hg.example.com/access.log
	ErrorLogfile = /var/log/hiawatha/vhosts/hg.example.com/error.log
	Alias = /static:/usr/lib/python2.7/site-packages/mercurial/templates/static
	ScriptAlias = /hg:/usr/lib/python2.7/site-packages/mercurial/templates/static/hgweb.cgi
	EnablePathInfo = yes
	ExecuteCGI = yes
	FollowSymlinks = yes
	Setenv HGWEB_CONFIG = /etc/hgweb.conf
	TLScertFile = ssl/hg.example.com.pem
	TimeForCGI = 5
	UseToolkit = hg
}

and an example hgweb.conf:

[defaults]
diff = -g

## Deprecated, huh; use paths
## Path to collection of repositories
[collections]
/srv/vcs/hg = /srv/vcs/hg

## Paths to individual repositories
#[paths]
#hgbook-hg = /srv/vcs/hg/hgbook-hg
#learn-hg = /srv/vcs/hg/learn-hg
#minimal-hg = /srv/vcs/hg/minimal-hg
#vx32-hg = /srv/vcs/hg/vx32-hg

## System level/default owner of repositories, you may override
## the 'ui.username' using respective .hg/hgrc in the repository
[ui]
username = Whoever Is Repo Owner <whoever.i.o@example.com>

[web]
#style = gitweb
allow_archive = bz2

Thanks!