But seriously when I had this issue, the easiest solution was to checkout the project to the shortest path I could. Since then I check out my code to C:\SVN\Project Name. VIPM also had issues in the past because it would build packages in a directory along side the source but I think they now build in a temp folder for this reason.
EDIT: Oh and as for builds we do put the EXE in source code control but not the installers. The reason for this is because if I build a LabVIEW EXE, then build it again with the same source code, the EXE's won't be the same bit for bit. They may function the same but there is no way to know for sure that the 1.0 EXE is the same functionality as another 1.0 EXE. So if we needed to make a new 1.0 EXE by rolling the source back, then rebuilding we wouldn't know it is the same as the 1.0 made previously. I don't really like that some builds are in source but it makes life much easier when I need to roll back and try a previous EXE.