diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
index fb431b38f99..7c05a9b6ea5 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
@@ -59,6 +59,7 @@
  * David McKnight     (IBM)      - [281712] [dstore] Warning message is needed when disk is full
  * David McKnight     (IBM)      - [234258] [dnd] Drag&Drop a folder silently ignores elements without permissions
  * David McKnight   (IBM)        - [299140] Local Readonly file can't be copied/pasted twice
+ * David McKnight     (IBM)      - [298440] jar files in a directory can't be pasted to another system properly
  *******************************************************************************/
 
 package org.eclipse.rse.files.ui.resources;
@@ -594,18 +595,31 @@ public class UniversalFileTransferUtility {
 						{
 							emptyFolders.add(tempFolder);
 						}
-						//get all subfolders
+						//get all subfolders						
 						children=srcFS.list(srcFileOrFolder, IFileService.FILE_TYPE_FOLDERS, monitor);
+						
 						if(!(children==null) && !(children.length==0))
 						{
-							SystemRemoteResourceSet childSet = new SystemRemoteResourceSet(srcFS, children);
-							//recurse with subfolders to check for empty folders
-							SystemWorkspaceResourceSet childResults = downloadResourcesToWorkspaceMultiple(childSet, monitor);
-							if (childResults.hasMessage())
-							{
-								resultSet.setMessage(childResults.getMessage());
+							// make sure children are not archives!
+							ArrayList fcs = new ArrayList();
+							for (int c = 0; c < children.length; c++){
+								IRemoteFile child = children[c];
+								if (!child.isArchive()){
+									fcs.add(child);								
+								}
+							}
+							if (fcs.size() > 0){
+								
+								SystemRemoteResourceSet childSet = new SystemRemoteResourceSet(srcFS, fcs);
+													
+								//recurse with subfolders to check for empty folders
+								SystemWorkspaceResourceSet childResults = downloadResourcesToWorkspaceMultiple(childSet, monitor);
+								if (childResults.hasMessage())
+								{
+									resultSet.setMessage(childResults.getMessage());
+								}
+								resultSet.addResource(tempFolder);
 							}
-							resultSet.addResource(tempFolder);
 						}
 					}
 					catch (SystemMessageException e)
diff --git a/rse/plugins/org.eclipse.rse.services.dstore/src/org/eclipse/rse/internal/services/dstore/files/DStoreFileService.java b/rse/plugins/org.eclipse.rse.services.dstore/src/org/eclipse/rse/internal/services/dstore/files/DStoreFileService.java
index e0036e1604b..6ca10d7492f 100644
--- a/rse/plugins/org.eclipse.rse.services.dstore/src/org/eclipse/rse/internal/services/dstore/files/DStoreFileService.java
+++ b/rse/plugins/org.eclipse.rse.services.dstore/src/org/eclipse/rse/internal/services/dstore/files/DStoreFileService.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2006, 2009 IBM Corporation and others.
+ * Copyright (c) 2006, 2010 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -61,6 +61,7 @@
  * David McKnight   (IBM)        - [281712] [dstore] Warning message is needed when disk is full
  * David McKnight   (IBM)        - [284056] Sychronize Cache causes the UI to hang with no way out
  * David McKnight   (IBM)        - [284420] nullprogressmonitor is needed
+ * David McKnight     (IBM)      - [298440] jar files in a directory can't be pasted to another system properly
  *******************************************************************************/
 
 package org.eclipse.rse.internal.services.dstore.files;
@@ -1087,21 +1088,21 @@ public class DStoreFileService extends AbstractDStoreService implements IFileSer
 					if (resultChild.getType().equals(IUniversalDataStoreConstants.DOWNLOAD_RESULT_SUCCESS_TYPE))
 					{
 						// do standard conversion if this is text!
-						if (!isBinaries[i]){ // do standard conversion if this is text!
+						if (!isBinaries[j]){ // do standard conversion if this is text!
 							String localEncoding = SystemEncodingUtil.getInstance().getLocalDefaultEncoding();
-							IFileServiceCodePageConverter codePageConverter = CodePageConverterManager.getCodePageConverter(hostEncodings[i], this);
+							IFileServiceCodePageConverter codePageConverter = CodePageConverterManager.getCodePageConverter(hostEncodings[j], this);
 
 							try {
-								codePageConverter.convertFileFromRemoteEncoding(remoteElement.getName(), localFile, hostEncodings[i], localEncoding, this);
+								codePageConverter.convertFileFromRemoteEncoding(remoteElement.getName(), localFile, hostEncodings[j], localEncoding, this);
 							}
 							catch (RuntimeException e){
 								Throwable ex = e.getCause();
 								StringBuffer msgTxtBuffer = new StringBuffer(RSEServicesMessages.FILEMSG_OPERATION_FAILED);
 								msgTxtBuffer.append('\n');
 								msgTxtBuffer.append('\n');
-								msgTxtBuffer.append(remoteFiles[i]);
+								msgTxtBuffer.append(remoteFiles[j]);
 								msgTxtBuffer.append('\n');						
-								msgTxtBuffer.append(hostEncodings[i]);
+								msgTxtBuffer.append(hostEncodings[j]);
 								msgTxtBuffer.append(" -> ");
 								msgTxtBuffer.append(localEncoding);