It works pretty well within its limitations, but other downsides are:<p>* If your program creates a temporary file on the webdav file system, it ain't temporary, it just became version controlled. :-(<p>* You tend to get a <i>lot</i> of versions, all looking alike.  It becomes somewhat more difficult to determine <i>which</i> version you want to roll back to if you need to.  In addition, it takes up a lot of disk space to maintain lots of (unnecessary) versions, especially if they are binary blobs.<p>Both of the above drawbacks can be worked around by copying the file off the webdav file system, editing it, and then copying it back on.  In the case where I saw this done, most (all?) of the users ended up switching to TortoiseSVN and stopped using the webdav interface.