I am using Eclipse 3.6 with Subclipse 2.1.0. I can access Subversion 1.5.x and more recent. My guess is that you ancient version of Eclipse, with its equally ancient version of subclipse, cannot access the fairly new version of Subversion you are attempting to access. You should upgrade to a more modern version of Eclipse and subclipse.
I cannot change version as this is project requirement and standard. Also the same thing works with my desktop so i am confused why it is not working on my laptop. Also checkout works from svn but if i checkout a project from subversion and then import in eclipse then this problem arise.