Subversion 1.4.x uses a different (non-XML) format for the .svn/entries file. It automatically updates your working copy if it finds the older-style XML format. It is important to upgrade all Subversion clients at the same time to ensure they all can read the new format. Your Subversion client is too old (version 1.3.2) to read the working copy updated by Subclipse 1.2.0. The latest version of Subversion available for Ubuntu Feisty is 1.4.3.
Subversion 1.4.x uses a different (non-XML) format for the .svn/entries file. It automatically updates your working copy if it finds the older-style XML format. It is important to upgrade all Subversion clients at the same time to ensure they all can read the new format. Your Subversion client is too old (version 1.3.2) to read the working copy updated by Subclipse 1.2.0. The latest version of Subversion available for Ubuntu Feisty is 1.4.3.