Web-Based Bug Tracking Software?

The Mayor asks: "I'm looking at starting a development project that will include an Open Source(tm) component. I'm looking for a Web-based defect/bug tracker. I can't use SourceForge, as I'd like to use the same system for both our Open Source(tm) products and our proprietary products. I'd prefer a free product (as in beer), as this is for a startup company. I'm leaning towards Bugzilla, but I'd like to get the opinions of our esteemed readers..."

"The software should have the following features.

1. Allows users to log and track bugs over the Internet (web-based).
2. Has hooks to CVS (or any other version control system). When a file is checked in to CVS that addresses a bug, it should automatically append the check-in comments to the bug tracker.
3. Has rich reporting facilities."