I decided to choose Mercurial as the VCS for my 'work'. This was a team that had no prior exposure to VC before. And works in a mixed environment. Hg follows the 'one true way' philosophy of Python; so there's just a single command to learn for each task. Plus, Bitbucket's new Free pricing plan for tiny teams convinced me to go with it for online hosting(rather than roll our own hg server over vpn)
Though, If I had to choose a host/vcs for 'my awesome FOSS community project', it would go on Github.