Newbie Configuration Question

[Steven Scott]

I am new to Mercurial, and am evaluating if it will work for our development
team.  We are a Windows shop coming from Visual SourceSafe, and are
considering switching to Mercurial.  It looks like it will do what we need,
but I have a couple requirements from the powers that be that I am not sure
how to configure.

I need a central repository on a shared drive (S:\ for instance) for all our
projects (S:\Project1, S:\Project2, etc...).  Also, each developer will
clone from this central repository when they do their work and then
contribute back.  The central drive is also for backups for code escrow
which we need to do with some customers.

My question is, can this be done?  What is the best way to do it, and how do
I do it in the Windows version of Mercurial?  We are looking at using
version 1.6.
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