Okay now I tried the following with the same client computer  
(Windows) version of darcs (2008-02-06), and remote repo (hashed):

mkdir pycryptopp-hf
cd pycryptopp-hf
darcs init --hashed
time darcs get --all --verbose --debug-verbose  
wonwinmcbrootles@192.168.1.104:playground/pycryptopp/pycryptopp-hf

It ended with:

-------
darcs failed:  binary patch to ./misc/dependencies/setuptools-0.6c7- 
py2.5.egg couldn't apply.
Error applying patch to the working directory.

This may have left your working directory an inconsistent
but recoverable state. If you had no un-recorded changes
by using 'darcs revert' you should be able to make your
working directory consistent again.
-------

Then when I run "darcs repair", it ends with:

-------
darcs failed:  binary patch to ./misc/dependencies/setuptools-0.6c7- 
py2.5.egg couldn't apply.
-------

The full output of those two commands is attached (remember: "sudo  
apt-get install p7zip-full").

You can get a copy of this repository from http://allmydata.org/ 
source/pycryptopp , but note that it is a copy of the repository --  
it is not the actual same repository (hosted on my private  
192.168.1.104 in hashed format) involved in this bug.

Regards,

Zooko