As it turns out I think this was more of a misunderstanding of how svn is setup and how tortoiseSVN needs to access it. Tortoise can't check out multiple projects (which we knew.) What we overlooked is that creating a repository, isn't the same as creating a project.
Once we converted the svn.mydomain.com to be a repo itself, created a project within that, we were able to check it out without error.
I want to thank everyone that tried to help. I really appreciate your time.