14. Do not "version control" the file database.yml. Navigate to config folder and rename database.yml to database.example.

15. Right-click the config folder and commit.
16. Ignore database.yml when it's re-created (renaming back database.example to database.yml)

17. Right-click config folder and commit
18. Ignore .project and .loadpath files. Navigate to the root, temporarily move these two files to location outside my_rail_app folder.

19. Right-click my_rail_app folder and commit.
20. Re-create and ignore .project file. Do the same with .loadpath file.

21. Navigate to the root, right-click my_rail_app and select SVN Commit.
22. Voila! we're done. Good luck with your Rails project with Subversion.