Version Manager

I'm looking at the Version Manager tool, and have a couple of questions regarding it's use.
I've exported my zip file, and have used the tool to update my SVN repo. Am I correct in my understanding that the tool, creates the local repo first, does the extract and then uploads to the central repo ?
If I then update my application, I export the zip file (to the same location on disk) and attempt to run the tool again with add contents - the tool fails as it appears to want to create the local repo anew rather than updating the existing ?
No matter what option I use it seems that an existing local repo can't be updated ? The fail with the error :
XXX is already a working copy for a different URL; perform update to complete it


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