diff --git a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.java b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.java
index 69436a7ed94..18939f441d6 100644
--- a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.java
+++ b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.java
@@ -186,6 +186,7 @@ public class Messages extends NLS {
 	public static String NewMakeProjFromExistingPage_7;
 	public static String NewMakeProjFromExistingPage_8;
 	public static String NewMakeProjFromExistingPage_9;
+	public static String NewMakeProjFromExistingPage_DirReadOnlyError;
 	public static String NewVarDialog_0;
 	public static String NewVarDialog_1;
 	public static String PreferredToolchainsTab_0;
diff --git a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.properties b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.properties
index ac4acf5dce1..d45a0a1285a 100644
--- a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.properties
+++ b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/internal/ui/Messages.properties
@@ -152,6 +152,8 @@ NewMakeProjFromExistingPage_6=Browse...
 NewMakeProjFromExistingPage_7=Select root directory of existing code
 NewMakeProjFromExistingPage_8=Not a valid directory
 NewMakeProjFromExistingPage_9=Languages
+NewMakeProjFromExistingPage_DirReadOnlyError=Directory is read-only
+
 
 # ----------- Configuration Selection Page -----------
 BuildPropertyPage_error_Unknown_tree_element=Unknown type of element in tree of type {0}
diff --git a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/ui/wizards/NewMakeProjFromExistingPage.java b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/ui/wizards/NewMakeProjFromExistingPage.java
index 8848e47386a..b9f817f07bb 100644
--- a/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/ui/wizards/NewMakeProjFromExistingPage.java
+++ b/build/org.eclipse.cdt.managedbuilder.ui/src/org/eclipse/cdt/managedbuilder/ui/wizards/NewMakeProjFromExistingPage.java
@@ -155,10 +155,13 @@ public class NewMakeProjFromExistingPage extends WizardPage {
 			else {
 				final File file= new File(loc);
 				if (file.isDirectory()) {
+					// Ensure we can create files in the directory.
+					if (!file.canWrite())
+						msg = Messages.NewMakeProjFromExistingPage_DirReadOnlyError;
 					// Set the project name to the directory name but not if the user has supplied a name
 					// (bugzilla 368987). Use a job to ensure proper sequence of activity, as setting the Text
 					// will invoke the listener, which will invoke this method.
-					if (!projectNameSetByUser && !name.equals(file.getName())) {
+					else if (!projectNameSetByUser && !name.equals(file.getName())) {
 						WorkbenchJob wjob = new WorkbenchJob("update project name") { //$NON-NLS-1$
 							@Override
 							public IStatus runInUIThread(IProgressMonitor monitor) {
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.java
index 29c4a9f4a33..8748aa13afa 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.java
@@ -105,6 +105,7 @@ public class Messages extends NLS {
 	public static String CMainWizardPage_5;
 	public static String CMainWizardPage_6;
 	public static String CMainWizardPage_7;
+	public static String CMainWizardPage_DirReadOnlyError;
 	public static String ConfigDescriptionTab_0;
 	public static String ConfigDescriptionTab_1;
 	public static String ConfigDescriptionTab_2;
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.properties b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.properties
index fb82cc455f3..839d769eab1 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.properties
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/newui/Messages.properties
@@ -273,6 +273,7 @@ CMainWizardPage_3=No project types available. Project cannot be created
 CMainWizardPage_5=Cannot create ICProjectTypeHandler: 
 CMainWizardPage_6=File with specified name already exists.
 CMainWizardPage_7=Directory with specified name already exists.
+CMainWizardPage_DirReadOnlyError=Directory with specified name already exists and is read-only.
 
 ProjectContentsArea_0=Browse...
 ProjectContentsArea_1=Use default location
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/wizards/CDTMainWizardPage.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/wizards/CDTMainWizardPage.java
index d8b09411ef6..133785d1776 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/wizards/CDTMainWizardPage.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/wizards/CDTMainWizardPage.java
@@ -211,7 +211,12 @@ import org.eclipse.cdt.internal.ui.newui.Messages;
 	        		IFileInfo f = fs.fetchInfo();
 		        	if (f.exists()) {
 		        		if (f.isDirectory()) {
-		        			setMessage(Messages.CMainWizardPage_7, IMessageProvider.WARNING);
+		        			if (f.getAttribute(EFS.ATTRIBUTE_READ_ONLY)) {
+		        				setErrorMessage(Messages.CMainWizardPage_DirReadOnlyError);
+		        				return false;
+		        			}
+		        			else
+		        				setMessage(Messages.CMainWizardPage_7, IMessageProvider.WARNING);
 		        		} else {
 		        			setErrorMessage(Messages.CMainWizardPage_6);
 		        			return false;