Could you test the following patch, and report your Emacs and SSH versions?
--- psvn.el (revision 13845)
+++ psvn.el (local)
@@ -368,7 +368,7 @@ (defun svn-run-svn (run-asynchron clear-process-buffer cmdtype &rest arglist)
(svn-status-update-mode-line)
(sit-for 0.1)
(if run-asynchron
- (progn
+ (let ((process-connection-type nil))
(setq svn-proc (apply 'start-process "svn" proc-buf "svn" arglist))
(set-process-sentinel svn-proc 'svn-process-sentinel))
;;(message "running synchron: svn %S" arglist)
pgpnK504GcTTU.pgp
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