I get the same problem as above (but on Basil). I use Capistrano to deploy my app which is version controlled in the same server.
Error says:
** [out] ssh_exchange_identification: Connection closed by remote host
** [out] svn: Connection closed unexpectedly
In my deploy.rb I'm using:
set :repository, "svn+ssh://xxxxxxx@xx.xxx.xxx.xxx/home/xxxxxx/svn/xxxxxxxx/"
This worked fine for me a couple of days ago.
I get the same error when I ssh in to the server and tries to checkout my repository "manually".
I cannot use the file:///home/#{user}/svn/#{application}/ url as the repository in my deploy.rb either, as it doesn't work with Capistrano.