I'm starting to use Mercurial on my web server (in this case MediaTemple's Grid). I've used SVN previously, though I'm not an expert of version control systems. I'm just needing a little help with clearing up some confusion with getting it set up optimally.

I have a 'data' folder which is outside the web server root and that the browser cannot access. It was recommended to me before to have my Mercurial repositories setup here, then I would clone from here locally on my computer. I would also have a 'domains' folder that is basically the web server root and inside there is my actual domains where my websites are actually served to the browser - these would need to be updated from the 'data' repositories too.

But with this in mind, after setting it up, it seems inefficient... I'm cloning to my local (that makes sense), adding, committing, pushing. That's fine... But then I'm then updating in my data repository folder and then updating in my domains folder to actually update my websites.

Surely, I don't actually need this 'data' folder for repositories? Wouldn't my actual live 'domains' folders be the main repositories themselves? So I'm cloning locally and updating from these? Please help me clear some confusions with all this (if you can).