Whatever user you're running your mongrel in probably has to have a home directory to which it can write to, and check out your ssh config to and from. For trouble shooting that would be my first issue to look into.
As for the rest, 1.4 checks your current svn revision before each deploy; so you might want to look into what values you've inserted for 'repository' in your project configuration.
By default, webistrano will try to connect to your servers using whatever username your mongrel process is running as - but setting user in the project config will override this behaviour.
HTH,
Phill