I've setup subversion on Ubuntu 10.04, but can't get authentication to work. I believe all my config files are setup correctly, However I keep getting prompted for credentials on a SVN CHECKOUT. Like there is an issue with apache2 talking to svnserve. If I allow anonymous access checkout works fine.

Does anybody know if there is a known issue with subversion and 10.04 or see a error in my configuration?

below is my configuration:

# fresh install of Ubuntu 10.04 LTS 32bit

sudo apt-get install apache2 apache2-utils -y
sudo apt-get install subversion libapache2-svn subversion-tools -y
sudo mkdir /svn
sudo svnadmin create /svn/DataTeam
sudo svnadmin create /svn/ReportingTeam

#Setup the svn config file
sudo vi /etc/apache2/mods-available/dav_svn.conf
#replace file with the following.
<Location /svn>
  DAV svn
  SVNParentPath /svn/
  AuthType Basic
  AuthName "Subversion Server"
  AuthUserFile /etc/apache2/dav_svn.passwd
  Require valid-user
  AuthzSVNAccessFile /etc/apache2/svn_acl
</Location>

sudo touch /etc/apache2/svn_acl
#replace file with the following.
[groups]
 dba_group = tom, jerry
 report_group = tom

[DataTeam:/]
 @dba_group  = rw

[ReportingTeam:/]
 @report_group  = rw

#Start/Stop subversion automatically
sudo /etc/init.d/apache2 restart
cd /etc/init.d/
sudo touch subversion
sudo cat 'svnserve -d -r /svn' > svnserve
sudo cat '/etc/init.d/apache2 restart' >> svnserve
sudo chmod +x svnserve
sudo update-rc.d svnserve defaults

#Add svn users
sudo htpasswd -cpb /etc/apache2/dav_svn.passwd tom tom
sudo htpasswd -pb /etc/apache2/dav_svn.passwd jerry jerry

#Test by performing a checkout
sudo svnserve -d -r /svn
sudo /etc/init.d/apache2 restart
svn checkout http://127.0.0.1/svn/DataTeam /tmp/DataTeam