Yes, the path is supposed to be exactly the one pointing to the root directory of the repository (in that directory should be directories with the following names: conf, db, hooks, locks etc., used by the repository itself).
For the second part, the answer is No. Syncro SVN Client does not offer the feature to create local repositories (accessed through file:// protocol). You have to use another tool to create such a repository. Syncro SVN Client only allows working with local repositories, but it does not create them.
Syncro SVN Client Team