Propfind 302 found error in Subversion

I just found a very ugly problem that appears in Subversion when ErrorDocument 404 handler is enabled in Apache like this:

ErrorDocument 404 http://www.blah.com

Basically what it adds up to is that Subversion refuses to add any new files to a repository and shows propfind 302 found error if ErrorDocument 404 handler is enabled.

The solution is to disable special 404 error handling for Subversion directories with ErrorDocument 404 default:

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<Location /repos>
DAV svn
SVNParentPath /var/www/svn
SVNIndexXSLT /svnindex.xsl
# Limit access to list of valid users.
# Require SSL connection for password protection.
# SSLRequireSSL
AuthType Basic
AuthName "Multiplex Systems Subversion Repository"
AuthUserFile /var/www/auth-file
Require valid-user
ErrorDocument 404 default
</Location>