diff --git a/core/org.eclipse.cdt.core.tests/misc/org/eclipse/cdt/core/envvar/IEnvironmentVariableManagerTests.java b/core/org.eclipse.cdt.core.tests/misc/org/eclipse/cdt/core/envvar/IEnvironmentVariableManagerTests.java
index 351b11bedae..676cedad16e 100644
--- a/core/org.eclipse.cdt.core.tests/misc/org/eclipse/cdt/core/envvar/IEnvironmentVariableManagerTests.java
+++ b/core/org.eclipse.cdt.core.tests/misc/org/eclipse/cdt/core/envvar/IEnvironmentVariableManagerTests.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2009 Broadcom Corp. and others.
+ * Copyright (c) 2009, 2010 Broadcom Corp. 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
@@ -25,6 +25,7 @@ import org.eclipse.cdt.core.testplugin.ResourceHelper;
 import org.eclipse.core.resources.IProject;
 import org.eclipse.core.resources.IResource;
 import org.eclipse.core.resources.ResourcesPlugin;
+import org.eclipse.core.runtime.NullProgressMonitor;
 import org.eclipse.core.runtime.jobs.IJobManager;
 import org.eclipse.core.runtime.jobs.ISchedulingRule;
 import org.eclipse.core.runtime.jobs.Job;
@@ -140,6 +141,69 @@ public class IEnvironmentVariableManagerTests extends TestCase {
 		assertEquals(var2, envManager.getVariable(var2.getName(), prjDesc.getConfigurationById(id2), true));
 	}
 
+	/**
+	 * Tests we can load an old-style preferences while an incompatible scheduling rule is held.
+	 * @throws Exception
+	 */
+	public void testOldStyleLoadConflictingSchedulingRule() throws Exception {
+		final IProject project = ResourceHelper.createCDTProjectWithConfig("incompatibleSchedRule");
+
+		// Add another, derived configuration
+		ICProjectDescription prjDesc = CoreModel.getDefault().getProjectDescription(project);
+		ICConfigurationDescription desc = prjDesc.getActiveConfiguration();
+		final String id1 = desc.getId(); // Config 1's ID
+		final String id2 = "712427638";  // Config 2's ID
+		prjDesc.createConfiguration(id2, "config2", desc);
+		CoreModel.getDefault().setProjectDescription(project, prjDesc);
+
+		IEnvironmentVariableManager envManager = CCorePlugin.getDefault().getBuildEnvironmentManager();
+		IContributedEnvironment contribEnv = envManager.getContributedEnvironment();
+		final IEnvironmentVariable varOrig = new EnvironmentVariable("FOO", "ZOO");
+		contribEnv.addVariable(varOrig, prjDesc.getConfigurationById(id2));
+		CoreModel.getDefault().setProjectDescription(project, prjDesc);
+
+		final String env = "#Mon Nov 16 21:47:46 GMT 2009\n" +
+		"eclipse.preferences.version=1\n" +
+		"environment/project/712427638=<?xml version\\=\"1.0\" encoding\\=\"UTF-8\" standalone\\=\"no\"?>\\n" +
+		"<environment append\\=\"true\" appendContributed\\=\"true\">\\n" +
+		"<variable delimiter\\=\"\\:\" name\\=\"FOO1\" operation\\=\"replace\" value\\=\"BAR1\"/>\\n" +
+		"<variable delimiter\\=\"\\:\" name\\=\"FOO2\" operation\\=\"replace\" value\\=\"BAR2\"/>\\n" +
+		"<variable delimiter\\=\"\\;\" name\\=\"FOO\" operation\\=\"append\" value\\=\"BAR\"/>\\n</environment>\n";
+		project.getFile(".settings/org.eclipse.cdt.core.prefs").setContents(new ByteArrayInputStream(env.getBytes("UTF-8")), true, false, null);
+
+		ISchedulingRule incompatibleRule = new ISchedulingRule() {
+			public boolean isConflicting(ISchedulingRule rule) {
+				return rule == this || rule instanceof IResource;
+			}
+			public boolean contains(ISchedulingRule rule) {
+				return rule == this;
+			}
+		};
+		try {
+			Job.getJobManager().beginRule(incompatibleRule, new NullProgressMonitor());
+			final IEnvironmentVariable var = new EnvironmentVariable("FOO", "BAR", IEnvironmentVariable.ENVVAR_APPEND, ";");
+			final IEnvironmentVariable var1 = new EnvironmentVariable("FOO1", "BAR1", ":");
+			final IEnvironmentVariable var2 = new EnvironmentVariable("FOO2", "BAR2", ":");
+	
+			prjDesc = CoreModel.getDefault().getProjectDescription(project);
+			assertEquals(var, envManager.getVariable(var.getName(), prjDesc.getConfigurationById(id2), true));
+			assertEquals(var1, envManager.getVariable(var1.getName(), prjDesc.getConfigurationById(id2), true));
+			assertEquals(var2, envManager.getVariable(var2.getName(), prjDesc.getConfigurationById(id2), true));
+		} finally {
+			Job.getJobManager().endRule(incompatibleRule);
+		}
+
+		// Change back to FOO => ZOO , close and re-open the project and check its still there
+		prjDesc = CoreModel.getDefault().getProjectDescription(project);
+		contribEnv.addVariable(varOrig, prjDesc.getConfigurationById(id2));
+		CoreModel.getDefault().setProjectDescription(project, prjDesc);
+		project.close(null);
+		project.open(null);
+
+		prjDesc = CoreModel.getDefault().getProjectDescription(project);
+		assertEquals(varOrig, envManager.getVariable(varOrig.getName(), prjDesc.getConfigurationById(id2), true));
+	}
+
 	/**
 	 * Test that an ovewrite of new style preferences is loaded correctly
 	 * @throws Exception
diff --git a/core/org.eclipse.cdt.core/utils/org/eclipse/cdt/utils/envvar/PrefsStorableEnvironment.java b/core/org.eclipse.cdt.core/utils/org/eclipse/cdt/utils/envvar/PrefsStorableEnvironment.java
index 11090263968..a58c877d5ad 100644
--- a/core/org.eclipse.cdt.core/utils/org/eclipse/cdt/utils/envvar/PrefsStorableEnvironment.java
+++ b/core/org.eclipse.cdt.core/utils/org/eclipse/cdt/utils/envvar/PrefsStorableEnvironment.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2009 Broadcom Corporation and others.
+ * Copyright (c) 2009, 2010 Broadcom 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
@@ -342,29 +342,22 @@ public class PrefsStorableEnvironment extends StorableEnvironment {
 		//      topNode.get(fSerialEnv.getPrefName(), def)
 		String envString = StorableEnvironmentLoader.loadPreferenceNode(fSerialEnv);
 		ICStorageElement element = StorableEnvironmentLoader.environmentStorageFromString(envString);
-		try {
-			if (element != null) {
-				Preferences oldNode = fSerialEnv.getNode();
-				oldNode.put(fSerialEnv.getPrefName(), ""); //$NON-NLS-1$
-				oldNode.flush();
+		if (element != null) {
+			Preferences oldNode = fSerialEnv.getNode();
+			oldNode.put(fSerialEnv.getPrefName(), ""); //$NON-NLS-1$
 
-				// New Preferences node
-				Preferences newNode = fSerialEnv.getNode().node(fSerialEnv.getPrefName());
-				StorableEnvironment oldEnv = new StorableEnvironment(element, false);
-				for (Map.Entry<String, IEnvironmentVariable> e : oldEnv.getMap().entrySet())
-						((StorableEnvVar)e.getValue()).serialize(newNode.node(e.getKey()));
-				fCachedSerialEnv.putAll(oldEnv.getMap());
-				if (!fAppendChanged)
-					fAppend = oldEnv.fAppend;
-				newNode.putBoolean(ATTRIBUTE_APPEND, fAppend);
-				if (!fAppendContributedChanged)
-					fAppendContributedEnv = oldEnv.fAppendContributedEnv;
-				newNode.putBoolean(ATTRIBUTE_APPEND_CONTRIBUTED, fAppendContributedEnv);
-				// flush
-				fSerialEnv.getNode().flush();
-			}
-		} catch (BackingStoreException e) {
-			CCorePlugin.log(e);
+			// New Preferences node
+			Preferences newNode = fSerialEnv.getNode().node(fSerialEnv.getPrefName());
+			StorableEnvironment oldEnv = new StorableEnvironment(element, false);
+			for (Map.Entry<String, IEnvironmentVariable> e : oldEnv.getMap().entrySet())
+					((StorableEnvVar)e.getValue()).serialize(newNode.node(e.getKey()));
+			fCachedSerialEnv.putAll(oldEnv.getMap());
+			if (!fAppendChanged)
+				fAppend = oldEnv.fAppend;
+			newNode.putBoolean(ATTRIBUTE_APPEND, fAppend);
+			if (!fAppendContributedChanged)
+				fAppendContributedEnv = oldEnv.fAppendContributedEnv;
+			newNode.putBoolean(ATTRIBUTE_APPEND_CONTRIBUTED, fAppendContributedEnv);
 		}
 	}