Have you considered changing Subversion Edge services to run as a specific user account, and then moving the PYTHONHOME environment variable to a user level variable for that account only? Unlike a system-wide variable? It seems like it should work.
BTW, the PYTHONHOME variable is added for mod_python to work correctly (which serves as ViewVC). If you can find another way to get mod_python to work, you can try this.
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