Take folder files, inside an SVN working copy, running in Linux. The folder was set to be ignored, with the commands:
svn propset svn:ignore * \'fil
How are you testing it? If you
svn commit files
Then the ignore isn't checked. If you svn commit ., then the automatic behavior of Subversion will ignore it. (This confused me at one point, too. Subversion assumes you're smarter than the svn:ignore.)