Bug: Incorrect tree structure on nested repository access

I have really confusing bug in Tortoise 1.5.5 - it treats with
subrepositories in a strange way. Subfolders of subrepository are displayed
on a wrong nesting level. If PROJECT has folders trunk, tags and branches,
they are displayed on the same level as the PROJECT folder item while they
should be nested into PROJECT folder. Attachment included:
http://www.nabble.com/file/p20837256/TortoiseSVN-bug.jpg TortoiseSVN-bug.jpg

Under subrepository I mean repository located in folder (on hard disk) with
the same name as the folder (at the repository), for instance, at the top of
repository structure. Give you an example:
C:/repository/ (hard disk structure)
        conf\
        db\
        hooks\
        locks\
        format
        README.txt
        PROJECT\
                conf\
                db\
                hooks\
                locks\
                format
                README.txt
                
svn://localhost/ (Subversion repository structure)
        folder1/
                tags/
                trunk/
                branches/
        folder2/
                tags/
                trunk/
                branches/
        PROJECT/

svn://localhost/PROJECT (Subversion subrepository structure)
        tags/
        trunk/
        branches/

It may seem useless to use such framework, so you could ask me for the
reason why exactly I create such subrepositories. It is the matter of
independent revisions flow and convenient multiproject environment
organization which allows users to see all the projects that are hosted on
subversion server directly from subversion client. I completely disagree
with people who think that this feature should be deprecated. This bug is
critical for me because I have several multiple-project environments
configured with such structure (which of course I and repo-users get used
to) and after update to subversion 1.5 and TortoiseSVN 1.5 they are
completely mixed up. My repositories cannot be accessed directly from
TortoiseSVN.

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