This is very easy once you get the steps. hgignore does not apply to the files already committed for tracking.
I use Tortoise Hg Workbench for UI.
In case build related binary files are checked in that need not be tracked, try this. When a rebuild is done, those files will again appear under files to commit. You can see this by selecting the green Commit button in the toolbar.
Select the files you want to ignore, then right click and select "Forget" (remember you have already committed the file earlier). This would mark the files as "R" for removal. Select the checkboxes next to the file and commit.
After commit, there would be a “?” mark next to those files and will appear in pink. Select those files and right click and select "Ignore". This would bring up the hgignore editor. Add to .hgignore from that editor.
Commit the .hgignore as well so that you have it safe.
In case you are using this for your personal work, why dont you try VSTS, its really cool, has both git and TFS as the backhaul! I moved all my personal work to VSTS.
Note: Sorry for not being able to upload screen shots, absolutely tight on schedule.. :(
.hgignore
only ignores untracked files. It won't ignore already committed files. You have tohg remove
the files and commit the change. – Halvah