The Mercurial on the server is version 1.0.1. It does not have the rebase extension installed. Thank goodness, I found this post that explains how to manually rebase the repository.
http://blogs.sun.com/ace/entry/mq_mercurial_queues
This is the clearest walk through that I have come across so far. Better than the one on Mercurial's website.
Enjoy!