@jglick Yes, somehow I expected the plugin to use the configuration of the first mercurial installation that was listed. I did not expect it to have a hidden '(Default)' installation that I could not see nor change.
For other tools the installation section allows to say where a tool is installed or add an installer. They don't have settings that changes its behavior. Maven for example, has three sections: maven configuration, maven and maven project configuration. And then there are more settings for each job where maven is used.
I installed a vanilla Jenkins on my Windows 7 64-bits workstation. Caching does not work either on latest Jenkins 1.476.
Started by user anonymous
Building in workspace C:\Users\ronald\.jenkins\workspace\test
$ hg clone --rev default --noupdate http://ronaldradial:8000/ C:\Users\ronald\.jenkins\workspace\test