There are a couple of settings in repository-level configuration file which tell Mercurial where to pull from (`default`) and where to push to (`default-push` or `default`; think "remotes" in Git parlance):

    [paths]
    default = http://live.hglabhq.com/hg/hgsharp/hgsharp
    default-push = http://live.hglabhq.com/hg/hgsharp/hgsharp

When you create a new repository with `hg init`, the `[paths]` section is, naturally, empty, hence the complaining.

There was no default remote defined, since it was a newly created repository and was not cloned from a server.