Dreamhost has now fixed this problem

"""
Our apologies for the delays.  We did have SVN problems at the time it
was implemented, but our admin team has found the source and rectified
the situation.  All Subversion should now be compatible with PHP and
PHP
as CGI domains.

If there is anything more we can help you with, please let us know and
we
will be more than happy to accommodate.
"""

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