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To reproduce: This requires two users, or two separate eclipse sessions. Both users up to date with head revision. User 1: Add new file to repository and commit. User 2: Synchronize with repository, but don't accept update yet. User 1: Delete the file, and commit change to repository. User 2: Refresh synchronize view. In-coming file addition still shows. Many things User 2 might try don't work: accepting the incoming file, just choosing Team/Update from the Navigator. Things that do work: User 2 Synchronize a different project, then synchronize the original project. My guess is that shutting down and restarting eclipse would also workaround this. Probably quite rare, and the workaround quite easy, probably not a high priority to fix.
*** This bug has been marked as a duplicate of 101633 ***