It's the environment I have set up in my company, and am working with right now.
Description of the environment
We are a team of 4 developpers, working on a Java desktop project. The source code is under Mercurial, with the main repo hosted on our development server. We mostly use TortoiseHg to work with Mercurial. The projects that we open sourced are on BitBucket. The project is built with Maven. The IDE we use is Netbeans, which works impressively well with Maven (it works ok with Mercurial, too).
Our dev server runs Archiva, which is a proxy Maven repository. We use maven to build the project, but we use it also to execute it (mvn exec), to deploy the generated artifacts to Archiva (mvn release), and to generate an assembly from the artifacts hosted by Archiva (mvn assembly).
We have a Redmine bugtracker too, and it is aware of the Mercurial repos. We use a RSS client to be informed of the project activity (from Redmine and Mercurial). We also have a Jabber server to send messages and files to each other.
We set up an Hudson server (continuous integration) and a Sonar server (code metrics). But in practice we don't really use it.
We have the choice of using Windows or Linux
Steps to make a release
Example to release a version 1.1.3
# tags the VCS, updates all the version numbers in the maven config file
mvn --batch-mode release:prepare -DreleaseVersion=1.1.3 -DdevelopmentVersion=1.1.4-SNAPSHOT
# performs a clean build, runs all tests, deploys to the server
# creates a unique jar (the final product) from the previously deployed artifacts (no recomilation involved)
<update the version number in a config file to 1.1.3>