Subversion & Proxy Servers

Is there a known issue with Subversion and proxy servers? I guess I should have run into this years ago but I don’t ever remember having an issue. I just got a new laptop with a fresh install of Windows XP and connection out to the Internet is using a Squid proxy server. When I connect to my Subversion server using TortoiseSVN (1.4.0-RC1), I get a following error message:


svn: REPORT request failed on '/svn/!svn/vcc/default'
svn: REPORT of '/svn/!svn/vcc/default': 400 Bad Request (http://www.vinnycarpenter.com)

TortoiseSVN-proxy-error

I know the issues isn’t with TortoiseSVN as I get errors connecting using command line tools, IntelliJ IDEA and Eclipse with the Subclipse plugin. Is this a known issue? The Subversion FAQ doesn’t really have any answers and the recommendation of adding extension_methods in the FAQ didn’t work. Anyone else run into this?