Comment 4 for bug 425385

Ah, are you trying to init your entire home dir, or a new project under
it?

If the former, try this:
mkdir temp
cd temp
bzr init
bzr mv .bzr ../
cd ..
bzr st
hopefully that will blow up with a more useful error.

If the latter, then its a sibling - something in your homedir, I guess.

-Rob