Hybrid SVN/HTTP host

Greetings, All!

I understand it's mostly Apache question, but I figured I'd better ask here
first.
Got my time to setup and start SVN repos for my project. Been using CVS for
long time, but most of my projects has been retired recently and with server
reinstall I got a good opportunity to start fresh... well, lets make it short.

Basic idea was to have SVN listening at http[s]://svn.mydomain.local/ using
dav_svn Apache module, virtualhosts... all that stuff, with separate
repositories accessible as http[s]://svn.mydomain.local/repository/ and small
introductory page at the root of repository hub.
Reading a bit, I was able to start it to work and from first glance it were
working good. But then I followed to my fresh project folder and issued
svn import localdir http://svn.mydomain.local/repository/trunk/localdir
command. Surprisingly, answer was something like
"svn: server returned bad reply 200 Ok in response to OPTIONS http://svn.mydomain.local/"

Virtualhost set up as follows:

<VirtualHost *>
    ServerName svn.mydomain.local
    ServerAlias svn.realdomain

    ErrorLog "C:/home/svn/.log/error_log"
    CustomLog "C:/home/svn/.log/access_log" common

    <IfModule rewrite_module>
        RewriteLog "C:/home/svn/.log/rewrite_log"
        RewriteLogLevel 0
    </IfModule>

    DocumentRoot "C:/home/svn/.htdocs"

    <Directory "C:/home/svn/.htdocs">
        AllowOverride Limit AuthConfig
        Options -Indexes
        DirectoryIndex index.html
        AddDefaultCharset utf-8

        <IfModule rewrite_module>
            RewriteEngine On
            RewriteRule "^index\..*" "" [redirect=permanent,qsappend,last]
            RewriteRule "^\..*" - [forbidden,last]
            RewriteBase "/"
            RewriteCond "%{REQUEST_FILENAME}" "^(C:/home/svn/).htdocs/([^\/\.]+)(/.*)?$"
            RewriteCond "%1%2" !-d
            RewriteRule ".*" - [redirect=404,last]
        </IfModule>

    </Directory>

    <Location ~ "^/[^\/\.]+(/.*)?$">
        Order allow,deny
        Allow from 192.168.1.10

        <IfModule dav_svn_module>
            DAV svn
            SVNParentPath C:/home/svn
        </IfModule>
    </Location>
</VirtualHost>

Repository has been created before import, and it was accessible from browser,
and even allowed me to commit single file.

That opening two questions:
1. Why it looking into the root when there's 100%
nothing to see for SVN, any repository that could be there, will have name
http://svn.mydomain.local/repos
And why it wouldn't look to the same root if I, say, change it to
http://svn.mydomain.local/svn/repos with corresponding change to the Apache
<Location "/svn">
...

2. Is that at all possible to make such scheme work?
I.e. separate request types between Apache itself and SVN somehow?

-- 
WBR,
 Andrey Repin (anrdaemon_at_freemail.ru) 24.03.2009, <18:30>
Sorry for my terrible english...
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