Keep in mind when you are trying to convert them to use hg that some of them would rather kill several members of their family than take 5 minutes to learn a new piece of software.
With this in mind, If you can successfully convert the repository to hg on your machine than you might be able to show them the benefits.
Show them how commiting doesn't mean screwing everyone else. Commiting means 'let me track what I am doing'. Show them how cloning is so fast, and you can have an instant sandbox for new ideas.
Show them that merge actually works.
I say good luck. It is a huge uphill battle to convince people to change their workflow.