Error from script\generate with --svn option

I have not been able to google a solution to this error, and I didn’t
find anything about it in the group archives. Here is what happens:

C:\path to\my project>ruby script\generate scaffold article
title:string body:text --svn
exists app/models/
exists app/controllers/
exists app/helpers/
create app/views/articles
svn: ‘C:’ is not a working copy
svn: Can’t open file ‘C:.svn\entries’: The system cannot find the
path specified.

(and so on, for every file/dir created by the script)

This is Rails 2.0.2 on Win XP. All I had done beforehand was check
out the project from svn and move into its directory. I am new to
svn, so probably I did something wrong, but it looks like the generate
script is parsing the paths incorrectly.