After you've disabled the on-demand access (you can do that for the working
copy folder alone), you have to wait a while until *all* files (including
those inside the usually hidden .svn folder!) show the green overlay (see
the link to the blog post you just posted, there are images on how that
overlay has to look).
Meaning: all files have to be locally available immediately.
The reason some apps can work with those on-demand files and not TSVN is
that TSVN is a shell extension, and if a shell extension takes too long for
a specific task, the explorer will kill it to prevent the whole
explorer/desktop from freezing. That's why TSVN won't work with on-demand
files: it takes too long to fetch them and so the explorer process just
stops the shell extension part of TSVN.
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