Below is the file 'tests/t_setup_workspace_in_workspace.at' from this revision. You can also download the file.

AT_SETUP([setup in subdirectory])
MTN_SETUP

# Set up a project
AT_CHECK(MTN setup --branch=testbranch foo, [], [ignore], [ignore])

# Then set up another project in a subdirectory without giving a database
# or branch.  mtn SHOULD fail on this.
AT_CHECK(cd foo && SAFE_MTN setup bar, [1], [ignore], [ignore])

AT_CLEANUP