I have a customized eclipse of Version: 3.7.1. With SVN 1.6 and Java 1.6. The Subversive team provider was 0.7.9.xx.
The Team provider was working perfect and suddenly started producing the errors saying, "Authentication error. svn: OPTIONS of 'foo': 403 Forbidden (http://baar)".
Could not find any issue in my svn authentication , and even subversive client. I also have tortoise SVN client installed and it was working perfectly all right.
Couldn't find any solution around.
So the Solution for this is .....
Check your eclipse.ini file probably it may be missing your java version.
Check for these lines.
-vm
$YOUR_JAVA_HOME/bin/javaw.exe
This will bring everything back to normal!!!
PS: Not sure how did this vanished from my eclipse.inin though ......