"Someone is actially looking into setting up a revision control system for an embedded project."

Actually, just about all the embedded projects I've worked on have had revision control - but they have tended to be largish 16- and 32-bit systems.

What is usually forgotten is things like the "source code" for programmable logic, etc - and control of this is often hampered by the tools themselves!
Fortunately, I didn't have much trouble persuading my current client that the Triscend configurable logic design needs control - and the FastChip tools are reasonably amenable to it!

Another thing to remember is to include the uVision Project in your source control!
The .uv2 and .opt files are just plain text, so it's not too difficult.
(You only really need to control the .uv2 file - uVision creates a new .opt if it needs to).
Hint: Close all editor windows before checking-in a uVision Project - otherwise the next person to get the project out will have their screen filled up with all the windows you last used!