I'm currently trying to reproduce this as I'm interested in this type of
problem but I'm having difficulty with svn 1.6 and am time constrained so
will give it another shot later. Not really helpful and more discussion than
anything but it sounds a lot like a common performance gotcha that appears
when abnormal conditions are met such as this.

A fix for this problem would be really appreciated.

I was using Windows XP in the experiment in the last post.

Yesterday, I tried to reproduce it on another computer with the Linux version (1.6.6, under Ubuntu 10.04). The performance drop was measurable (3 minutes vs. 1 minutes for checkout of 10.000 files), but not as dramatic as in the Windows version.

Maybe it's related to this issue?
http://subversion.tigris.org/issues/show_bug.cgi?id=3719

Niklas

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