Branching Problem 1.7.10

I have a file:/// repository. I have a solution that I am branching HEAD revision. So, it seem that it should be only repository to repository branch. Both the from and to URL indicate file:///. But when I click OK, I get the following:

Copy C:\Dat\Nsg\L\WebSitesMvc\KnockOut1\trunk\MvcApp to file:///C:/Svn/KnockOut1/branches/v1_1/trunk/MvcApp, Revision HEAD
File not found: transaction '14-t', path '/branches/v1_1/trunk/MvcApp'

I am confused? Is this a bug or am I doing something wrong. See attached file.

Phil

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