I have not used a symanted product in a long while but i'm thinking your firewall has a rule that blocks SVN.

Try looking at the firewall rules for one (or more) that specifically refer to the svn client and remove them.
If you can't find any then you should look for rules that block svn ports, if you have such rules and you do need them, i suggest you make a new rule that grants access to the SVN client specifically (by referring the exe file path) and set it with a higher priority than the existing rule
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I found out more about why this fails. I was having the same problem and did some network traces, it seems that Symantec changing is changing the headers the SVN client sends. In particular it is removing the
Accept-Encoding: svndiff1;q=0.9,svndiff;q=0.8
and replacing it with
---------------: ----------------------------
and adding
Accept-Encoding: gzip, deflate

This causes the client to get a response that is gziped and that it can't handle.

There is a firewall policy that can be changed for this, I don't know what it is as my machine is a managed client, but I contacted my IT department and they issued a new manged policy that allowed it to work now without the mangling of the headers.
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