Based on all of the things you mentioned, I would guess that the working copy is not the right format. The current version of Subclipse is 1.10.x which would require a Subversion 1.8 working copy format. Team > Upgrade would be available to update it.
You said you have Subclipse 1.8.x installed, so that would requires a Subversion 1.7 working copy format. If the working copy is from a lower version then you could upgrade it, but if the working copy is from Subversion 1.8, then it will not be able to read it.