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This comes from (please look also for a detailed explanation): https://issuetracker.springsource.com/browse/STS-1015
I believe that this is the same issue as bug 379765, virgo isn't watching the staged directory; that's why it isn't deploying it. Chris, let us know if that bug doesn't look like a good match to you. *** This bug has been marked as a duplicate of bug 379765 ***