can't create directory: permissiosn denied

I am unable to get subversion to work correctly, I am able to create the
repository with svnadmin create /svn and am able to view the repository
(although empty) from a web browser. Currently all apache
authentication on the server is disabled. When I try to create a new
folder using a client (any client) such as TortoiseSVN I am able to view
the repository just fine but I get the following error when creating the
folder "Can't create directory '/svn/db/transactions/0-1.txn':
Permission denied". I will only be using the httpd to interact with the
repository database. This is most likely a fs permission problem but I
have been unable to get through it.

Any recommendations are welcome.

Thanks in advance.

Apache config file is :

<Location /svn>

            DAV svn

            SVNPath /svn

</Location>

Versions:

OS: Centos 4.4 (no selinux)

Apache: 2.0.59

Subversion 1.4.2
Received on Mon Nov 27 20:58:04 2006