We're facing a problem here and I'm sure we can't be the only ones to have to tackle it.

The Setup:

Three Salesforce Packages in development (A, B, C).

Four developers all working on them at various times.

Package C is dependant on Package B.

Version Control is needed.

The Solution:

Use Eclipse to develop in, and each developer has ther own dev orgs for each project

Use SVN repositories to commit and update each other's orgs and finally the master org that packages.

Use Eclipse to edit the files and commit, update, and save.

The Problems:

it's rediculously tedious to set up a development environment for package C because most of the files require "version 1.1" of package B.  We're on version 3 by now, so now we have to either install version 1.1 (and every other version some file might have in the required XML) or manually change every xml file to have the actual version we have installed.  The "or higher" concept doesn't exist in this environment.

Also many times we'll update from svn, and it can't save to the develoment org saying the file has been changed since last save, so we'll then have to refresh from the org, then revert to the svn, and hope it saves right (and no changes were made in that org, for that example) and that happens nearly every update.

This also doesn't cover the issues created when svn "makes" a file in a dev org...

Is there a setup step or a "work properly" checkbox we're missing somewhere?  if not, is anyone else facing this issue?