Is there anything further on this issue? I'm experiencing the same results for a fresh checkout from an svn+ssh repo, performed through TM.
 
On 24 Jan 2008, at 21:59, dave.myron wrote:

>> [...] the default values for the above should become:
>>
>>    svn log --xml --limit 15 -vr HEAD:1 \
>>    «file» 2>&1 | ruby -- "${TM_BUNDLE_SUPPORT}/format_log_xml.rb"
>>
> Digging up an old thread here, but I'm getting these same problems  
> with the
> latest TextMate and the latest Subversion bundle.
>
> When I run the second command above (the parsed one with defaults)
> [1] I get
> the same REXML error [2].
... [show rest of quote]

So you can reproduce the error outside TextMate?

> However, if I change it to this (two-liner) it
> works just fine (of course, it doesn't show in TM...):
> [...]
> The error with the rescue block uncommented:
> /opt/local/lib/ruby/1.8/rexml/source.rb:226:in `pos': Illegal seek
> (Errno::ESPIPE)

It would appear the REXML parser treats the IO object as more than  
just a pipe (i.e. it tries to seek).

Try instead of using '</tmp/test.log' do: 'cat /tmp/test.log|ruby …',  
see if that changes things. Also try change '2>&1' to '2>/dev/null' in  
the version that fails for you in Terminal.
--
Dana