Does Subversion hook work with file URLs?

Question

I'm trying to test some Subversion commit hooks, but when I use the simplest case - a local repository and the file:// protocol - then the hooks are not executed.

I'm on Windows - here's a transcript of a simplified example:

C:\>mkdir \testsvn    
C:\>mkdir \testsvn\repos    
C:\>cd \testsvn\repos    
C:\testsvn\repos>svnadmin create --fs-type fsfs /testsvn/repos    
C:\testsvn\repos>cd \testsvn    
C:\testsvn>mkdir source    
C:\testsvn>cd source    
C:\testsvn\source>echo This is a readme file.>readme.txt    
C:\testsvn\source>svn import file:///testsvn/repos/somemodule -m "Imported somemodule"
Adding         readme.txt    
Committed revision 1.

C:\testsvn\source>cd \testsvn\repos\hooks    
C:\testsvn\repos\hooks>copy con pre-commit.bat
echo Commits disabled! 1>&2
exit /b 1
^Z
        1 file(s) copied.

C:\testsvn\repos\hooks>md \testsvn\checkout    
C:\testsvn\repos\hooks>cd \testsvn\checkout    
C:\testsvn\checkout>svn checkout file:///testsvn/repos/somemodule
A    somemodule\readme.txt
Checked out revision 1.

C:\testsvn\checkout>cd somemodule    
C:\testsvn\checkout\somemodule>echo This is line 2 of the readme file.>>readme.txt    
C:\testsvn\checkout\somemodule>svn status -u
M                1   readme.txt
Status against revision:      1

C:\testsvn\checkout\somemodule>svn commit -m "This should fail if the pre-commit hook works..."
Sending        readme.txt
Transmitting file data .
Committed revision 2.

The last command there should have failed because of my extreme commit hook. What am I doing wrong?