Apparently Google Code limits you to having 10 hosted projects unless you beg for a higher allowance.
I sent an email to the support address (as directed in the error message) asking for help two days ago and have received nothing but an automated response telling me to go whine in the forum.
Lame.
Update: One email, three forum posts, and nearly a week later, they've finally upped my limit. Sweet.
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After the 18th, you might want to give CodePlex a shot. They're releasing a Subverion "bridge." Basically, you'll be able to use any subversion client against codeplex and it'll transpantly turn them into TFS commands on the server. Your users can use either TFS clients directly (Teamprise, Team Explorer, etc) or Subversion. It's all one server.
It's a pretty slick site and it's been really fast.
Codeplex seconded
Seconded on CodePlex. I've liked the fact that it's source control can be integrated nicely into Visual Studio 2005, and when it starts supporting Subversion, it will add a whole new layer of deliciousness to it.