Its been a while since I my last post where I got very annoyed with a bug in TortoiseSVN which prevented me from creating a local repository. If you try to create a local repository using the svn context menu then it will show an uninformative error message.
Since then I have figured out how to create a repository using the command line subversion tool which can be found here.
Once you add the "bin" folder to your PATH environment variable, then to create a repository, all you need to type is:
This command will create a repository in c:\repository. Note that this directory does not need to exist; svnadmin will create it for you.
Checking out this repository can be done via TortoiseSVN by right clicking inside a folder and selecting "SVN Checkout". Then set the "url of repository" to "file:///c:/repository".
If one wanted a local repository then this is much simpler than either setting up svnserver as a service or setting up the apache server.
The simplest, easiest documentation I have found on subversion is here. Even though it is geared towards Linux users, Windows users should be able to follow it too.