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Using build I20060328-0010, I started Eclipse and was prompted for the workspace location. I then restarted and wasn't prompted and the workspace was in a default location in the "Documents and Settings" directory. Staring with -clean will promtp but removing the -clean will revert back to starting on the default workspace location without prompting.
This works for me but it may only be a problem with an 'initial' launch.
Marking this as a dupe of bug 134412 since the newer bug has more information. Michael, when you say "I then restarted", what do you mean? Did you exit the IDE and then double-clicked eclipse.exe again? *** This bug has been marked as a duplicate of 134412 ***
Yes