Looks like a good start. I'm OK with linking with sqlite (doing Fossil right will require it too), but it would be nice to make it conditional with an autoconf script. If you're not comfortable with that, don't worry about it; I'll take care of it later.
I'd say it's about time to add better svn-specific tests too. E.g. there's separate code for svn < 1.4, 1.4 <= svn < 1.7, and now you're adding a third way for >= 1.7. Aieee. There's no way we can keep this all working without better tests.
add tests/setup-svn1.7 to create a repo and working copy with svn 1.7
add tests/test-svn1.7 to use that working copy to run some tests
modify Makefile to hook in the new svn1.7 tests
Don't worry about the older svn working copy code: it's already tested a bit by tests/test-simple, and it's not your problem. You didn't write that code. ;-)