Version Control configuration problem

Hi gurus,

I have a fresh new BO4 install 4.2 SP 2. I am facing an issue when trying to use Subversion. When I login into the CMC and click Version Management, I am getting the following error:

Sorry, Promotion management application is unable to process your request.
The error from the server is: com.businessobjects.vms.VMSException: com.businessobjects.vms.VMSException: com.businessobjects.vms.VMSException: java.io.IOException: Could not start '"C:\Program Files (x86)\Subversion\bin\svn" checkout svn://localhost:3690/svn_repository C:/Check_out/\REA-APP-BO4.rea.cec.eu.int\WORKSPACE -N --username lcm --password ***' in current working directory 'D:\SAP BusinessObjects\SAP BusinessObjects Enterprise XI 4.0\win64_x64'. Details: CreateProcess error=2, The system cannot find the file specified

I have specified the SVN properties in the CMC , under Version Control. I have checked that paths are correct and saved. The test never finishes, so I am not sure BO is accepting my input.
LCMSubversion service is up and running.

The strange thing is that the SVN properties show a D drive path and the error complains about not finding C:\ folders. Am I missing another configuration point?

Has anyone configured the default SVN in BO that can guide me?

Many thanks,

Sergio