### Eclipse Workspace Patch 1.0
#P org.eclipse.jdt.core
Index: model/org/eclipse/jdt/core/JavaCore.java
===================================================================
RCS file: /cvsroot/eclipse/org.eclipse.jdt.core/model/org/eclipse/jdt/core/JavaCore.java,v
retrieving revision 1.661
diff -u -r1.661 JavaCore.java
--- model/org/eclipse/jdt/core/JavaCore.java	18 Apr 2011 10:09:25 -0000	1.661
+++ model/org/eclipse/jdt/core/JavaCore.java	19 Apr 2011 08:30:43 -0000
@@ -3530,8 +3530,6 @@
 
 			// initialize all containers and variables
 			JavaModelManager manager = JavaModelManager.getJavaModelManager();
-			ExternalFoldersManager externalFoldersManager = JavaModelManager.getExternalManager();
-			externalFoldersManager.createExternalFoldersProject(monitor);
 			SubProgressMonitor subMonitor = null;
 			try {
 				if (monitor != null) {
@@ -3569,6 +3567,7 @@
 				monitor.subTask(Messages.javamodel_resetting_source_attachment_properties);
 			final IJavaProject[] projects = manager.getJavaModel().getJavaProjects();
 			HashSet visitedPaths = new HashSet();
+			ExternalFoldersManager externalFoldersManager = JavaModelManager.getExternalManager();
 			for (int i = 0, length = projects.length; i < length; i++) {
 				JavaProject javaProject = (JavaProject) projects[i];
 				IClasspathEntry[] classpath;
@@ -3597,7 +3596,13 @@
 					}
 				}
 			}
-			externalFoldersManager.createPendingFolders(monitor);
+			try {
+				externalFoldersManager.createPendingFolders(monitor);
+			}
+			catch(JavaModelException jme) {
+				// Creation of external folder project failed. Log it and continue;
+				Util.log(jme, "Error while processing external folders"); //$NON-NLS-1$
+			}
 			// initialize delta state
 			if (monitor != null)
 				monitor.subTask(Messages.javamodel_initializing_delta_state);
Index: model/org/eclipse/jdt/internal/core/ExternalFoldersManager.java
===================================================================
RCS file: /cvsroot/eclipse/org.eclipse.jdt.core/model/org/eclipse/jdt/internal/core/ExternalFoldersManager.java,v
retrieving revision 1.22
diff -u -r1.22 ExternalFoldersManager.java
--- model/org/eclipse/jdt/internal/core/ExternalFoldersManager.java	18 Apr 2011 09:57:07 -0000	1.22
+++ model/org/eclipse/jdt/internal/core/ExternalFoldersManager.java	19 Apr 2011 08:30:43 -0000
@@ -141,6 +141,12 @@
 
 	public IFolder createLinkFolder(IPath externalFolderPath, boolean refreshIfExistAlready, IProgressMonitor monitor) throws CoreException {
 		IProject externalFoldersProject = createExternalFoldersProject(monitor); // run outside synchronized as this can create a resource
+		return createLinkFolder(externalFolderPath, refreshIfExistAlready, externalFoldersProject, monitor);
+	}
+
+	private IFolder createLinkFolder(IPath externalFolderPath, boolean refreshIfExistAlready,
+									IProject externalFoldersProject, IProgressMonitor monitor) throws CoreException {
+		
 		IFolder result = addFolder(externalFolderPath, externalFoldersProject, false);
 		if (!result.exists())
 			result.createLink(externalFolderPath, IResource.ALLOW_MISSING_LOCAL, monitor);
@@ -150,14 +156,22 @@
 	}
 
 	public void createPendingFolders(IProgressMonitor monitor) throws JavaModelException{
-		if (this.pendingFolders == null) return;
+		if (this.pendingFolders == null || this.pendingFolders.isEmpty()) return;
+		
+		IProject externalFoldersProject = null;
+		try {
+			externalFoldersProject = createExternalFoldersProject(monitor);
+		}
+		catch(CoreException e) {
+			throw new JavaModelException(e);
+		}
 		Iterator iterator = this.pendingFolders.iterator();
 		while (iterator.hasNext()) {
 			Object folderPath = iterator.next();
 			try {
-				createLinkFolder((IPath) folderPath, false, monitor);
+				createLinkFolder((IPath) folderPath, false, externalFoldersProject, monitor);
 			} catch (CoreException e) {
-				throw new JavaModelException(e);
+				continue;
 			}
 		}
 		this.pendingFolders.clear();