Regardless of the good advice already given, the answer to the original question is that you can't delete a read-only file. You need to change its attributes first and the bits are described in the online help for the primitive that reads and writes the attributes.
OpenG has a Delete Recursive VI which already does this, if you want.
As a side issue, you might wish to use _svn directories instead of .svn in your client, since it has some advantages when working with LabVIEW.
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