diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
index 92466a86eca..af4eb50adec 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Builder.java
@@ -2620,25 +2620,30 @@ public class Builder extends BuildObject implements IBuilder, IMatchKeyProvider
 	
 	public ICOutputEntry[] getOutputEntries(){
 		if(isManagedBuildOn()){
-			return getDefaultOutputSettings(true);
+			return getDefaultOutputSettings();
 		}
 		ICOutputEntry[] entries = getOutputEntrySettings();
 		if(entries == null || entries.length == 0){
-			entries = getDefaultOutputSettings(false);
+			entries = getDefaultOutputSettings();
 		}
 		return entries;
 	}
 	
-	private ICOutputEntry[] getDefaultOutputSettings(boolean managedBuildOn){
+	private ICOutputEntry[] getDefaultOutputSettings(){
 		Configuration cfg = (Configuration)getConfguration();
 		if(cfg == null || cfg.isPreference() || cfg.isExtensionElement()){
 			return new ICOutputEntry[]{new COutputEntry(Path.EMPTY, null, ICLanguageSettingEntry.VALUE_WORKSPACE_PATH | ICLanguageSettingEntry.RESOLVED)};
 		}
 		
-		IPath path = cfg.getOwner().getProject().getFullPath();;
-		if(managedBuildOn){
-			path = path.append(cfg.getName());
+		IPath path = ManagedBuildManager.getBuildFullPath(cfg, this);
+		IProject proj = cfg.getOwner().getProject();
+		IPath projFullPath = proj.getFullPath(); 
+		if(projFullPath.isPrefixOf(path)){
+			path = path.removeFirstSegments(projFullPath.segmentCount()).makeRelative();
+		} else {
+			path = Path.EMPTY;
 		}
+			
 		return new ICOutputEntry[]{new COutputEntry(path, null, ICLanguageSettingEntry.VALUE_WORKSPACE_PATH | ICLanguageSettingEntry.RESOLVED)};
 	}
 
diff --git a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CBuildSettingCache.java b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CBuildSettingCache.java
index d6363535e6e..63b18c1a960 100644
--- a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CBuildSettingCache.java
+++ b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CBuildSettingCache.java
@@ -32,12 +32,15 @@ public class CBuildSettingCache extends CDefaultBuildData implements
 	private ICOutputEntry[] fResolvedOutputEntries;
 
 	CBuildSettingCache(CBuildData base, CConfigurationDescriptionCache cfgCache){
-		super(base.getId(), base);
+		super(/*base.getId(), base*/);
+		
+		fId = base.getId();
 		
 		fCfgCache = cfgCache;
 		
 		fCfgCache.addBuildSetting(this);
 		
+		copySettingsFrom(base);
 	}
 	
 	void initEnvironmentCache(){
diff --git a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CConfigurationDescriptionCache.java b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CConfigurationDescriptionCache.java
index 50c16dd3592..b8ea3a5f061 100644
--- a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CConfigurationDescriptionCache.java
+++ b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/internal/core/settings/model/CConfigurationDescriptionCache.java
@@ -204,6 +204,7 @@ public class CConfigurationDescriptionCache extends CDefaultConfigurationData
 	
 	void addBuildSetting(ICBuildSetting bs){
 		fChildList.add(bs);
+		fBuildData = (CBuildData)bs;
 	}
 
 	public ICProjectDescription getProjectDescription() {