I think you are bumping up against one of the fundamental limits of svn, paired with a project which was not designed to be used with it. As I'm sure you know, subversion allows you to do many creative things--at the directory level. For files, it can get touchy.
First, there is a policy matter. Everyone is running their own environment, and this environment needs to be portable. Everything goes in one repository.
You don't mention if you are *nix or m$. As usual, there is a workable solution for *nix
Create a directory trunk/local_env. Inside trunk/local_env, create a directory for every local environment. Depending on corporate paranoia policy, these directories can be accessible only to their owners.
Each file which is part of a local environment is made into a soft link. That soft link in turn goes through trunk/env--a directory link which is NOT part of the repository. Now anyone can potentially check out the project with everyone's environments, and can select which ever they wish to use, by linking the single directory.
I have no idea what the equivalent might be in m$.