svnsync issues

Hi guys,
A bit of background. I am writing a frontend called SvnBridge, which allows to use SVN clients against different repositories.

My current issue is implementing the svnsync support.
More specifically, I can't get svnsync init to work correctly, and I am not really sure why. Attached to this email is a network trace of the conversation between svnsync and my server.
This is the result of:

C:\oss>svnsync init file://localhost/C:/oss/testsync http://localhost:8081/codeplex-tfs3/
svnsync: PROPFIND request failed on '/codeplex-tfs3/!svn/vcc/default'
svnsync: PROPFIND of '/codeplex-tfs3/!svn/vcc/default': 207 Multi-Status (http://localhost:8081)

Comparing the output of this vs. svn client to svn server talking to each other doesn't show any smoking guns.
I would appreciate any help,
Oren

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