After scouring web forums someone recommended taking the parenthesis off the first argument even though the path to the repository has parenthesis in it so that it is just %1 and that solved the problem. The working VisualSVN post-commit script is below:
"%VISUALSVN_SERVER%\bin\VisualSVNServerHooks.exe" ^
commit-notification %1 -r %2 ^
--from aaron@posscribble.com --to aaron@posscribble.com ^
--smtp-server mail.posscribble.com