Connecting TSVN to server

I am seeking the dumbed down version of connecting TSVN to my server. Reading
network settings section provides instruction for proxy, (not going through
a company firewall) and access to a svn+ssh repository (I just want to
checkout a file from my server to my local machines repository and then
commit back with version control). Using import from the local repository
folder and entering URL of the folder I want from the server returns:
OPTIONS of 'http://myipaddress/home/drupal6/sites': 200 OK
(http://myipaddress)

Am I required to create a repository on my server as well as having one on
my local machine? I figured one use of TSVN was to act as a local machine
repository (if that was all you required; I don't need to share a repository
from my server at this time, or am I entirely missing how TSVN is used?)
for checking out from a server and initiating version control of folders and
files then pushing them back to the server.

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