Hg update causing temporary port read/write issues

I am having a strange issue with apache and ssh, that I can correlate to the hg update command.

After executing

$ hg update


on a remote server from a changeset push of more than 1 or 2 files. For about a minute afterward, the apache server returns 403(on local files such as images), and 404(on external files such as jquery libraries).

Also, during the same time period if I try and push more changes to the remote server, I get the response

remote: ssh: connect to host *hostname* port 22: No route to host


After about 1 or 2 minutes the issue goes away, and the server returns to a working state with the new changes successfully in place.

After I execute hg update, the shell returns right away without a response. Normally when this happens the changes are successfully in place.

The only guess that I have is that mercurial is hanging as a background process and locking httpd and sshd operations somehow?

I looked in the apache logs and there aren't any errors indicating anything out of the ordinary is going on.

Thanks,

Ed