Getting error message "file or directory is corrupted and unreadable" while using Subversion

In case you are using Windows 7, you might receive following messages while using subversion:

Error: Can't move
Error: '[...]\\.svn\tmp\entries'
Error: to
Error: '[...]\\.svn\entries':
Error: The file or directory is corrupted and unreadable.

It is a known bug in Windows 7, and it should be fixed in Windows 7 SP1. More details about the error can be found here and there is a hotfix called kb 982927 which could be downloaded here before. To receive the hotfix, you will need to contact Microsoft.