Mark,

>I had to change the "Log On As" in the Windows Services to administrator from 
>"local system" account.

Probably there is some problem reported when your run VisualSVN Server
under local system account. You could try to check this by executing
hook script from command line in the interactive mode under local
system account.

Please consider the similar topic in our Google groups topic:
http://groups.google.com/group/visualsvn/browse_thread/thread/60bc7f796b8576c0.

-- 
Regards,
Olga Dolidze
VisualSVN Support

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