I just started using Subversion on all my static sites which create a .svn folder in each directory.  Pretty annoying!  Good news is that I found a handy Dreamweaver extension that hides all SCM directories.

Installation is straight foreword.  Download the extension (link below), install using Dreamweaver Extension Manager, go to command menu and click ‘Cloak SCM directories’.  All .svn folders on the selected site will magically become cloaked, thus those files stay on your local copy instead of getting deployed to the production server.  Yay!