Hi All!
I got exactly the same error with 1.8.0 on Windows 7 x64.
I have already reverted back to 1.7.9, but here's what I've noticed:
1. I work with 2 different svn repositaries, one is private, I don't know 
what version of SVN is installed, but it works fine. The other one is https://
xp-dev.com/, and here I couldn't do anything - neither update\commit, nor 
checkout\show log.
2. I got different errors. I got error above when I tried to checkout. I got 
message that I'm in offline mode when I tried to update\commit. And when I 
tried to open repository browser, first I had to enter my login\pass (though 
they are stored), then I got also error above.

AFter I uninstalled 1.8.0 and installed 1.7.9, I didn't have to enter my login
\pass.

Worst thing is that new Visual SVN works only with 1.8.0, so I had to revert 
it back either.

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