Hmm ... I sometimes forget that other people don't waste as much time on Slashdot as I do.

I don't want to propose one over the other, as I'm less likely to be using it as much as you! My experience is, like yours, Rich - with
Subversion. However, I've been noticing a big push away from it over the last couple of years. On another mailing list I subscribe to, one of the original designers/authors of
Subversion, Ben Collins-Sussman (who literally wrote
the book on it) specifically stated that he strictly uses hg [aka
Mercurial] for personal work now. "Hope that's a good testimonial.

".
So I'm prepared to believe there's something to this distributed VCS approach.

A bit of background - distributed VCSs sprang up a few years back when the proprietary version control system being used for the Linux kernel withdrew some of the free licenses it had granted to some kernel developers (looong story behind this). When this happened, Linus was so unimpressed with the idea of switching to
Subversion that he developed the DVCS
git from scratch. Now, I'm not suggesting we switch to
git because the interface is apparently very unixy and inconsistent.
Mercurial was created at around the same time and has the same basic functionality and design with very similar features but has a more consistent user interface and is generally easier to learn. Note: that even with a distributed VCS, the project can still be distributed via a server - and there should be a web front-end to it, too. Assuming I can get it all working.

I just want to make sure that we make an intelligent choice now, so we don't end up questioning the decision later down the line.
If everyone could have a quick read up on
Mercurial (here's one link I've been strongly recommended:
http://hginit.com/) before you make your mind up that'd be good. If you still prefer
Subversion, then we'll stick with that.
Also, one other question is about what tools you plan to use - svn has the advantage that it is integrated into more tools but if you're only going to use
TortoiseSVN then bear in mind that there is a
Mercurial equivalent.
Cheers,
Sam.