[CentOS] svnserve with encryption on CentOS

Hello,
I've got a CentOS box that i'm wanting to set up svnserve on. I've
read much, and am confused. Does svnserve support data encryption and
also restricting users from specific repositories?

I'm thinking of a single repo structure under /var/svn-repos and I've
got two users user1 and user2, each should have access to their own
projects in this case user1 can access project1 and user2 can access
project2, but neither should be allowed to access the others.

My second issue is I don't want to have a access path like
/var/svn-repos/project1

for instance. I've read the -r root option which I would set to:

-r /var/svn-repos

would settle this, but am not sure where to set that option so it's picked up.

Thanks.
Dave.