Build failing - can't find SVN?

I am (finally) deploying Anthill into our environment and hit a major
snag.  I get the following message when I attempt to build my project:

Retrieving project files: FAILED to build project.  Message:
CreateProcess: svn checkout --non-interactive --username anthill
--password password http://server/path e:\anthill\leasegen\hplg1
error=2

Server is Win2K.

svn.exe is in the global PATH.  Tomcat is running as the local system
account.  My working directory is created, it's just empty.  If I run
the same SVN checkout command at a command prompt (I recognize that
this isn't an exact test, because it's a different user account doing
it), the checkout works perfectly.

On my desktop, which is WinXP, I've not had this problem.  Tomcat is
running as the local system account and svn.exe is in the global PATH
here as well.

I don't know is whether the W2K box has been rebooted since the PATH
was updated to add the SVN bin directory (I don't see anything in
Event Viewer that indicates it has), but Tomcat has been restarted
many times since.  Do I need to reboot the whole box for the local
system account to pick up an addition to the global PATH?