Is there any good way to handle large assets (i.e. 1000\'s of images, flash movies etc.) with a DVCS tool such as hg and git. As I see it, to clone repositories tha
I've struggled with this myself. As you said, versioning GBs of assets can be a huge pain.
For projects that require external participation I've found Mercurial to be a working solution, but not a great one. It eats up disks space for large files and can be fairly slow depending on the circumstances.
For my in-house design work I prefer to use simple syncing tools (rsync, synctoy, whatever else) to keep directories up-to-date between servers/machines and then do version control manually. I find I rarely need to version-control for anything beyond major revisions.