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Here's what I did, I have installed svnserve as a service and I started it with the net start svn service command. I typed svn ls svn://localhost to test the service but it returned the error as stated in the title of this post.
I entered svn --version and svnserve --version on my computer to find out the version numbers and the client and the server version is the same, version 1.5.6. I'm guessing the error appears due to different versions of the server and the client.
When I start the server using svnserve --daemon --root command in cmd, The error still appears.
Why does the error appear? Thanks