Possible SVN Relocate bug

I have an svn repository that was recently moved to a different server. A
user who had previously checked out a folder within the repository was
unable to relocate their copy to this new server. They kept getting the
following error:

PROPFIND request failed on '/svn/repository'
PROPFIND of '/svn/repository': 403 Forbidden (https://domain.name )

They were able to check out a fresh copy from the new repository, but were
not able to relocate their old copy to it.

After looking in to this (and doing a little testing) It appeared that the
user could not relocate the repository unless they had permission to read
and write (possibly just read -- I only tested with both read and write)
access to the root of the repository. When I added them as having rw
permission in [/], they could relocate the repository without any problems.
I've attached some (shortened) configuration files and log messages below.
Hopefully they will help. Of note, notice that the error.log file shows them
trying to access PROPFIND on repository:/ when they were relocating a
subfolder within it.

I'm using svn version 1.4.3 on my client, and 1.3.2 on the server.

If this is a bug, what should I do?
If this is a misconfiguration on my part, how should I fix it?

Thank you,
-- Scott

PS. I've been trying to post this for a number of days, so apologies if
there are multiple copies.

 ---- Apache Config file contains:

<Location /svn>

        DAV svn
        SVNParentPath /var/svn
        SVNAutoversioning on

        Order Allow,Deny
        Allow from all

        <IfModule mod_ssl.c>
                SSLRequireSSL
        </IfModule>

        AuthType Basic
        AuthName "SVN Repositories"
        AuthUserFile /etc/apache2/.htpasswd
        AuthzSVNAccessFile /etc/apache2/svn.authz

        Require valid-user

</Location>

---- svn.authz

[/]
* =

[repository:/some/folder]
user = rw

---- Apache error.log

[Mon Mar 05 22:21:03 2007] [error] [client xxx.xxx.xxx.xxx] Access denied:
'user' PROPFIND repository:/
Received on Thu Mar 8 16:48:13 2007