=== modified file 'bzrlib/config.py'
--- bzrlib/config.py	2008-11-25 17:19:26 +0000
+++ bzrlib/config.py	2008-11-26 20:36:13 +0000
@@ -489,6 +489,8 @@
         # file, and we would rather not expose the user to file urls.
         if location.startswith('file://'):
             location = urlutils.local_path_from_url(location)
+        elif location.startswith('chroot'):
+            location = urlutils.unescape(location.split("//",1)[1])
         self.location = location
 
     def _get_matching_sections(self):