Can't Update project when parent directory is in the svn repository

Hello all,

Whenever I try to Update a project when the parent directory is a
working copy, it fails with the following message and trace:

An internal error occurred during: "SVN Update".

java.lang.IllegalArgumentException: Path must include project and
resource name: /.svn
org.eclipse.core.internal.utils.Assert.isLegal(Assert.java:58)
org.eclipse.core.internal.resources.Workspace.newResource(Workspace.java
:1509)
org.eclipse.core.internal.resources.Container.getFolder(Container.java:1
35)
org.tigris.subversion.subclipse.core.client.OperationManager.onNotify(Op
erationManager.java:132)
org.tigris.subversion.svnclientadapter.SVNNotificationHandler.notifyList
enersOfChange(SVNNotificationHandler.java:185)
org.tigris.subversion.svnclientadapter.javahl.JhlNotificationHandler.onN
otify(JhlNotificationHandler.java:189)
org.tigris.subversion.javahl.SVNClient.update(Native Method)
org.tigris.subversion.javahl.SVNClientSynchronized.update(SVNClientSynch
ronized.java:315)
org.tigris.subversion.svnclientadapter.javahl.JhlClientAdapter.update(Jh
lClientAdapter.java:887)
org.tigris.subversion.subclipse.core.commands.UpdateResourcesCommand.run
(UpdateResourcesCommand.java:52)
org.tigris.subversion.subclipse.ui.operations.UpdateOperation.execute(Up
dateOperation.java:52)
org.tigris.subversion.subclipse.ui.operations.RepositoryProviderOperatio
n.execute(RepositoryProviderOperation.java:68)
org.tigris.subversion.subclipse.ui.operations.SVNOperation.run(SVNOperat
ion.java:90)
org.eclipse.team.internal.ui.actions.JobRunnableContext.run(JobRunnableC
ontext.java:159)
org.eclipse.team.internal.ui.actions.JobRunnableContext$3.runInWorkspace
(JobRunnableContext.java:179)
org.eclipse.core.internal.resources.InternalWorkspaceJob.run(InternalWor
kspaceJob.java:38)
org.eclipse.core.internal.jobs.Worker.run(Worker.java:66)

This was produced on Windows XP with Eclipse 3.0.1 and Subclipse 0.9.25
and was
reproducible on OS X with Eclipse 3.0.1 and Subclipse 0.9.25, using the
Metissian packages.

When the following repository structure is checked out by another
client:

Project\
   Subproject1\
        .project
        .classpath
        ...
   SubProject2\
        .project
        ...

to produce the following working copy, where ExternalProject is defined
by an svn:external:

Project\
  .svn
  Subproject1\
    .svn
    .project
    .classpath
    ...
  Subproject2\
    .svn
    .project
    ...
  ExternalProject\
    .svn
    .project
    ...

ExternalProject can be updated fine, but any attempt to update
Subproject1 or Subproject2 fails with the above stack trace. Other
commands work fine on Subproject1 and Subproject2: Commit, Show pending
operations, Revert, Show properties, Show in resource history.

Workaround: Delete the Project/.svn directory, or checkout each project
one at time with subclipse or another client.

I am hoping someone can share some intuition on whether this is a
subclipse bug or an eclipse bug before I create an issue for it.

Thanks.

-- 
Antony Saba, awsaba@sandia.gov