What you want sounds like a "vendor branch" scenario to me.
current repository
root
|-- myproject
|
-- mycode
|
-- library -> svn:externals to a remote svn or your own libraryproject
suggested repository
root
|-- myproject
|
-- mycode
|
-- library -> copied/branched from ^/vendor/library/current (modified at this location as much as you like)
|
-- vendor
|
--library
|
--current
|
--imported-version-1.0
|
--imported-version-1.1
How to create the layout
Create ^/vendor/library/current and DOWNLOAD the original unmodified library code into it.
svn commit ^/vendor/library/current
svn cp ^/vendor/library/current ^/vendor/library/imported-version-1.0 (tag the import)
svn cp ^/vendor/library/current ^/myproject/library (branch the code into your project)
modify ^/myproject/library and commit
How to update the library without losing your modifications
Download the latest original release of the library into ^/vendor/library/current OVERWRITING files.
svn commit ^/vendor/library/current (checks in the difference between the two library releases)
svn cp ^/vendor/library/current ^/vendor/library/imported-version-1.1 (tag the change)
cd /your-local-workspace/myproject/library (will be merge target)
svn merge ^/vendor/library/current (get all CHANGES from the upstream branch and apply them to your modified library)
svn commit
profit
Instead of branching "current" directly into your project you could branch to a "my-modified-libs" directory and make use of it via externals. This would be advised if you have multiple projects that need the same modified version of a library.
Keep in mind that vendor branches will have problems dealing with renames and deletes as those can not be tracked by overwriting. Cross-repository merging is a different and rather young topic for SVN.
If you try it out, give us feedback how it went :)
C.