I am working in a student group with several other people. We would like to use Mercurial as our version control system, but some of our files can't be put online in a public hosting service like Google Projects or Codeplex. Is there some way that we can host a repo on our own machines, passing the files/changesets between each other as necessary, without creating a horribly conflicted mess?

I know that Mercurial has a bundle command that can be used to package a repo. If I do that, and send the bundle someone else, and they want to get the changes back to me, what's the best way to do that? Send me a bundle back?

I have a shared hosting account on a server. Is there any chance I could run Mercurial off that box? How would I find this out?