I have a subversion server for a client which uses a MySQL database to authenticate employees, and an AuthUserFile (htpasswd) to authenticate other users (vendors) into their repository.
I need to grant full access to the employees * = rw and access to only a subtree for the vendors. (Something like this): 
[/]
* = rw   #employees
vendor_user = 
[/sub-repo]
vendor_user = rw
Unfortunately the design of SVN auth seems to cascade * = rw down to everything despite more restrictive rules like  vendor_user = 
If anyone has advice, I'll be deeply appreciative!