When this posted I saw that the system description was http escaped.  That indicates to me the problem is with the new KDE 3.4.1 bits, and not KDevelop.  But I'm not sure.

It looks as if my conjecture about this being caused by http escapes may not 
be completely correct.  I tried this with a directory that has no non-alpha 
characters other than '/', and the SVN project still failed to work 
correctly.  It may be due to the use of file:// protocol specification. As 
in:

  shell-init: error retrieving current directory: getcwd: cannot access parent 
directories: No such file or directory
kdevelop (core): [void PartController::slotDocumentDirty(Kate::Document*, 
bool, unsigned char)] 
kdevelop (core): file:///home/hattons/code/cxx/gs/breakme/src/breakme.cpp
kdevelop (core): true
kdevelop (core): \x03
kdevelop (grep view): context in grepview
kdevelop: file context with /home/hattons/code/cxx/gs/breakme/src/breakme.cpp
kdevelop: dirpath /home/hattons/code/cxx/gs/breakme/.svn/false
kdevelop: entries /home/hattons/code/cxx/gs/breakme/.svn/entriesfalse
kdevelop (core): [void PartController::slotDocumentDirty(Kate::Document*, 
bool, unsigned char)] 


But that really is a guess.  It depends if its trying to tell the file system 
to use that name.  In any case.  I can't use the SVN support.

I've now noticed that all the project files _are_ actually being created.  They are deleted when KDevelop tries to run svn import.  I assume the intention is to import the project, then replace the local files with files checked out from the server.  There are not files being added to the server.

I am, however, challenged for a password, and I can hear the harddrive is being accessed on the server, so it's talking to the server. 

I fetched the latest kdesdk and replaced the SuSE provided rpms with my local 
build.  That had no effect on the problem.  I did notice this a bit higher up 
in the text dump from KDevelop:

kdevelop: 
kdevelop: 
kdevelop (core): dcop emitting project opened
QObject::connect: No such slot subversionPart::slotActionAddToIgnoreList()
QObject::connect:  (sender name:   'subversion_ignore')
QObject::connect:  (receiver name: 'Subversion')
QObject::connect: No such slot 
subversionPart::slotActionRemoveFromIgnoreList()
QObject::connect:  (sender name:   'subversion_donot_ignore')
QObject::connect:  (receiver name: 'Subversion')
QObject::connect: No such slot 
subversionPart::slotStopButtonClicked(KDevPlugin*)
QObject::connect:  (sender name:   'unnamed')
QObject::connect:  (receiver name: 'Subversion')

I tried allowing unauthenticated access to the server see if that worked. But it didn't.  This is the /var/log/apache2/access_log
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs HTTP/1.1" 207 647 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/vcc/default HTTP/1.1" 207 398 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/bln/4 HTTP/1.1" 207 449 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs HTTP/1.1" 207 647 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/vcc/default HTTP/1.1" 207 449 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/bc/4 HTTP/1.1" 207 657 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs HTTP/1.1" 207 647 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs HTTP/1.1" 207 647 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/vcc/default HTTP/1.1" 207 398 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs/!svn/bln/4 HTTP/1.1" 207 449 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "PROPFIND /repos/gs HTTP/1.1" 207 647 "-" "SVN/1.0.8 (r11084) neon/0.24.7"
63.161.169.137 - - [05/Jun/2005:13:12:18 -0400] "REPORT /repos/gs/!svn/vcc/default HTTP/1.1" 200 2558 "-" "SVN/1.0.8 (r11084) neon/0.24.7"

I'm running: Subversion version 1.0.8, if that matters.

I wonder if this might be the problem:
vcs/subversion/subversion_core.cpp
line 241
void subversionCore::createNewProject( const QString& // dirName
                                       , const KURL& // importURL
                                       , bool // init
                                       ) {

}

I still have more to investigate, but I am fairly confident the problem is in 
the syntax of the request sent to the server. Using GDB I've been able to 
determine the problem is almost certainly in the "if" block of the first "if 
else" of the following function:

kdevelop/vcs/subversion/integrator/svnintegratordlg.cpp:46
void SvnIntegratorDlg::accept()
{
	KURL servURL (repos1->url());
	if ( servURL.isEmpty() ) return;
	if ( ! servURL.protocol().startsWith( "svn" ) )
		servURL.setProtocol( "svn+" + servURL.protocol() ); //make sure it starts 
with "svn"
	kdDebug(9036) << "servURL : " << servURL.prettyURL() << endl;

	if ( importProject->isChecked() ) {
		QByteArray parms;
		QDataStream s( parms, IO_WriteOnly );
		int cmd = 5;
		s << cmd << servURL << KURL::fromPathOrURL( m_projectLocation );
		SimpleJob * job = KIO::special(servURL, parms, true);
#if KDE_VERSION <= KDE_MAKE_VERSION(3,3,90)
		KIO_COMPAT::NetAccess::synchronousRun(job, 0);
#else
		NetAccess::synchronousRun(job, 0);
#endif
	} else if ( createProject->isChecked() ) {
/*		KURL miscURL = servURL;
		miscURL.setPath(servURL.path() + "/tags/");
		KIO::SimpleJob * job = KIO::mkdir(miscURL);
		NetAccess::synchronousRun(job, 0);
		miscURL.setPath(servURL.path() + "/branches/");
		job = KIO::mkdir(miscURL);
		NetAccess::synchronousRun(job, 0);
		miscURL.setPath(servURL.path() + "/vendor/");
		job = KIO::mkdir(miscURL);
		NetAccess::synchronousRun(job, 0);*/
		KURL::List list;
		KURL miscURL = servURL;
		miscURL.setPath( servURL.path() + "/tags/" );
		list << miscURL;
		miscURL.setPath( servURL.path() + "/branches/" );
		list << miscURL;
		miscURL.setPath( servURL.path() + "/vendor/" );
		list << miscURL;

		QByteArray parms;
		QDataStream s( parms, IO_WriteOnly );
		int cmd = 10; // MKDIR(list)
		s << cmd << list;
		SimpleJob *job = KIO::special(servURL, parms, true);
#if KDE_VERSION <= KDE_MAKE_VERSION(3,3,90)
		KIO_COMPAT::NetAccess::synchronousRun(job, 0);
#else
		NetAccess::synchronousRun(job, 0);
#endif
		QByteArray parms2;
		QDataStream s2( parms2, IO_WriteOnly );
		cmd = 5; //IMPORT
		servURL.setPath(servURL.path()+ "/trunk/");
		s2 << cmd << servURL << KURL::fromPathOrURL( m_projectLocation );
		job = KIO::special(servURL, parms2, true);
#if KDE_VERSION <= KDE_MAKE_VERSION(3,3,90)
		KIO_COMPAT::NetAccess::synchronousRun(job, 0);
#else
		NetAccess::synchronousRun(job, 0);
#endif
	}

	//delete the template directory and checkout a fresh one from the server
    KProcess *rmproc = new KProcess();
    *rmproc << "rm";
    *rmproc << "-f" << "-r" << m_projectLocation;
    rmproc->start(KProcess::Block);
        
	QByteArray parms3;
	QDataStream s3( parms3, IO_WriteOnly );
	int cmd2 = 1; //CHECKOUT
	int rev = -1;
	//servURL should be set correctly above
	s3 << cmd2 << servURL << KURL::fromPathOrURL( m_projectLocation ) << rev << 
QString( "HEAD" );
	SimpleJob *job2 = KIO::special(servURL, parms3, true);
#if KDE_VERSION <= KDE_MAKE_VERSION(3,3,90)
	KIO_COMPAT::NetAccess::synchronousRun(job2, 0);
#else
	NetAccess::synchronousRun(job2, 0);
#endif
}

Excellent debugging, thanks!

Just to be sure, you're talking about the code path that is used if import project is checked and create project is not checked, correct?

Svn support got large improvements, I think this is fixed.