svn post-commit hook fails to run with psexec

Question

Below is the script in my SVN post-hook fails to execute on every commit into SVN and hangs

c:\PsTools\Psexec.exe \192.168.1.64 -u SERVER1\Administrator -p PASSWORD c:\mybatchfiles\checkin.bat

This is to run a batch file on the remote machine (SERVER1) which is located on SERVER1 at c:\mybatchfiles\

But I am able to run the same above script successfully from the SVN machine on cmd prompt as well as in a batch file.

Other commands with psexec (cmd.exe /C ipconfig /all) through SVN hook also fails.

Command "net use P: \192.168.1.64\xxx PASSWORD /USER:SERVER1\Administrator" works in the SVN post-commit hook. So connectivity is not as issue.

Both machines (SVN and SERVER1) are NOT part of any domain, both are Windows 2008 servers.

Any ideas?