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Opening this after experience related in bug 355430 comment 57. This is actually working as designed, and not sure if there is an easy improvement, but seems like the "starting directory" has to be exactly right. And, a corollary of this is that things like "buildDirectory" can not be passed in on command line, because eclipse base builder assumes it can "change" when it makes its own special calls to "generateScript" or similar. (I saw this was true for "transformedRepo" too, but might be others). This is more of a "note to the future" since its fairly common for people to "pass in" buildDirectory during PDE invocation (instead of computing it based on "current location" (${basedir} ... so ... long term, low priority. It _might_ effect ease of running on "hudson" or similar, since technically can't specify "starting directory ... but, of course, could always specify it as an "offset path" from huson's working directory, or similar.
This bug hasn't had any activity in quite some time. Maybe the problem got resolved, was a duplicate of something else, or became less pressing for some reason - or maybe it's still relevant but just hasn't been looked at yet. If you have further information on the current state of the bug, please add it. The information can be, for example, that the problem still occurs, that you still want the feature, that more information is needed, or that the bug is (for whatever reason) no longer relevant. If the bug is still relevant, please remove the "stalebug" whiteboard tag.