There's a lot of information that I don't have about your installation.
I didn't give you specific commands because I'm not sure about all the
ways to set up SVN.
I use a pretty simple setup. We access our repo via
"svn://IP.address/repo" through TortoiseSVN here.
On the server, the repo
This is just a guess, but I'm wondering if the subdirectories that are
created by the application are getting the same permissions as the
initial path. Do you have group set for +s? I think you need that, or
subdirectories can be created that don't carry the same permissions as
the parents