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The Create Flexible Project wizard allows the project location to be specified, but when Finish is selected, the project is always created in the default location within the workspace (i.e., .../workspace/PROJECT_NAME). This is with Eclipse 3.1 M6, WTP 1.0 M4 using the correct versions of the required components on Windows XP Professional.
This defect is duplicate of 93535
Usually the newer bug is the dupe of the older bug, though. *** This bug has been marked as a duplicate of 93535 ***
Closing dup - track this problem with 93535