This is what I'm seeing ...

http://cl.ly/image/2p0b3B3M2Z0F

Clearly a terrible user experience and for that I'm sorry. It is fixed and the next patch will clear up the chatty error messages related to /.svn/ folders.

Still I don't lose a file so perhaps there is specific series of events...?

I'm also use Versions instead of subclipse so going to download Eclipse and subclipse when I get to get internet.