My friend here likes and loves CVS, using WinCVS...but man, do I hate WinCVS!!!

And SVN is not allowed, because it is not file-based

Not that it does such a bad job, but it is too hard to find out which Branches/tags are in use. Normally it is only possible to open Eclipse and use its CVS browser to find out what is where!!
@vixay:
In the story above I mention Eclipse. Eclipse has a beautiful plugin for the JIRA bugtracker system. JIRA is not free, but once you start with that one (especially in Eclipse) the reporting/tracking/maintenance of bugs will be a whole lot easier. From memory I know that PostGres, Oracle, MS-SQL and MySQL databases can be used. If you don't want or care to use the Eclipse setup, it's web interface is also very, very workable.
(and no, I'm just a happy user...not affiliated or related in any kind of way)
More info about JIRA:
http://www.atlassian.com