I use TortoiseHg. Create your local repository by cloning the main one (https://hg01.codeplex.com/nopcommerce), then work in your local repository. Whenever you make changes, you'll need to commit those changes to the local repository before getting updates from the main repository. When you sync with the main repository, TortoiseHg will show you a windows when there are conflicts that must be resolved. Those can easily be resolved using the Kdiff3 tool included with TortoiseHg.