I wondering if anyone else is having similar problems and/or there is a work around in place or coming in the near future.
1) Creating distribution kits causes the ..\VolumeX\bin folder to be deleted. This causes the .svn folder in the ..\VolumeX\bin folder to be deleted, which in turn causes subversion to not be able to commit the changes back into the repository. I'm not really sure it is the wisest thing to store the distribution kits in subversion repositories, but that is what my company has decided to do and therefore hopefully there is a solution out there for this.
2) There is also a problem with the ..\VolumeX\supportfiles directory and subversion. I think what is happening is all the files except the .svn directory are getting deleted and then recreated, which is causing another, and different from above, error to occur when the project is commited to the repository. I'm really not sure what is going on with this problem though. It appears the .svn folder may be getting corrupted during the deletion/creation of the files inside the ..\VolumeX\supportfiles directory.
Thank in advance for the help