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It is currently possible to add a project X to another project Y's 'Project References' properties page, even if project Y has previously been added to X's. This (circular project references) is causing problems for some builders etc., so it would be helpful if org.eclipse.ui.internal.ide.dialogs.ProjectReferencePage would prevent this from happening.
"As per http://wiki.eclipse.org/Platform_UI/Bug_Triage_Change_2009"
I don't think it is appropriate to outright prevent circular references. Some builders such as the Eclipse Java builder, supports and handles circular references. Although most people would discourage it, if you disallowed it you would prevent certain people from being able to work on their projects in Eclipse. The dialog could issue a warning when you add circularities though.
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. As such, we're closing this bug. If you have further information on the current state of the bug, please add it and reopen this bug. 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. -- The automated Eclipse Genie.