diff --git a/core/org.eclipse.cdt.ui/ChangeLog b/core/org.eclipse.cdt.ui/ChangeLog
index bbe42b7a986..1e519b50ff7 100644
--- a/core/org.eclipse.cdt.ui/ChangeLog
+++ b/core/org.eclipse.cdt.ui/ChangeLog
@@ -1,3 +1,10 @@
+2004-08-27 Alain Magloire
+
+	Fix for 72135
+	* src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathBasePage.java
+	* src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathSourceEntryPage.java
+	* src/org/eclipse/cdt/internal/ui/wizards/TreeListDialgField.java
+
 2004-08-26 Alain Magloire
 	Be on the same length as the Java Editor and Ant Editor
 	for the Preference page.  Misc warning removes, when
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathBasePage.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathBasePage.java
index 5b832b64d99..16d6c56f12a 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathBasePage.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathBasePage.java
@@ -28,10 +28,13 @@ public abstract class CPathBasePage extends AbstractCOptionPage {
 		super(title, image);
 	}
 
-	protected void fixNestingConflicts(List newEntries, List existing, Set modifiedSourceEntries) {
+	protected void fixNestingConflicts(List newEntries, List existingList, Set modifiedSourceEntries) {
+		ArrayList existing = new ArrayList(existingList);
 		for (int i = 0; i < newEntries.size(); i++) {
 			CPElement curr = (CPElement) newEntries.get(i);
 			addExclusionPatterns(curr, existing, modifiedSourceEntries);
+			// add the entry to the existing list so it can be analyse also.
+			existing.add(curr);
 		}
 	}
 
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathSourceEntryPage.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathSourceEntryPage.java
index 7171d905974..cef583f3c0d 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathSourceEntryPage.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/dialogs/cpaths/CPathSourceEntryPage.java
@@ -208,37 +208,16 @@ public class CPathSourceEntryPage extends CPathBasePage {
 		}
 	}
 
-	private boolean hasFolders(IContainer container) {
-		try {
-			IResource[] members = container.members();
-			for (int i = 0; i < members.length; i++) {
-				if (members[i] instanceof IContainer) {
-					return true;
-				}
-			}
-		} catch (CoreException e) {
-			// ignore
-		}
-		return false;
-	}
-
 	protected void sourcePageCustomButtonPressed(DialogField field, int index) {
 		if (field == fFoldersList) {
 			if (index == IDX_ADD) {
 				List elementsToAdd = new ArrayList(10);
 				IProject project = fCurrCProject.getProject();
 				if (project.exists()) {
-					if (hasFolders(project)) {
-						CPElement[] srcentries = openSourceContainerDialog(null);
-						if (srcentries != null) {
-							for (int i = 0; i < srcentries.length; i++) {
-								elementsToAdd.add(srcentries[i]);
-							}
-						}
-					} else {
-						CPElement entry = openNewSourceContainerDialog(null, true);
-						if (entry != null) {
-							elementsToAdd.add(entry);
+					CPElement[] srcentries = openSourceContainerDialog(null);
+					if (srcentries != null) {
+						for (int i = 0; i < srcentries.length; i++) {
+							elementsToAdd.add(srcentries[i]);
 						}
 					}
 				} else {
@@ -372,7 +351,7 @@ public class CPathSourceEntryPage extends CPathBasePage {
 		return false;
 	}
 
-	private void sourcePageDialogFieldChanged(DialogField field) {
+	void sourcePageDialogFieldChanged(DialogField field) {
 		if (fCurrCProject == null) {
 			// not initialized
 			return;
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/wizards/dialogfields/TreeListDialogField.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/wizards/dialogfields/TreeListDialogField.java
index 8222eed31e8..3d514428bfd 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/wizards/dialogfields/TreeListDialogField.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/wizards/dialogfields/TreeListDialogField.java
@@ -67,13 +67,13 @@ public class TreeListDialogField extends DialogField {
 
 	private Label fLastSeparator;
 
-	private Tree fTreeControl;
+	Tree fTreeControl;
 	private Composite fButtonsControl;
 	private ISelection fSelectionWhenEnabled;
 
-	private ITreeListAdapter fTreeAdapter;
+	ITreeListAdapter fTreeAdapter;
 
-	private Object fParentElement;
+	Object fParentElement;
 	private int fTreeExpandLevel;
 
 	/**
@@ -389,7 +389,7 @@ public class TreeListDialogField extends DialogField {
 		return fButtonsControl;
 	}
 
-	private void doButtonSelected(SelectionEvent e) {
+	void doButtonSelected(SelectionEvent e) {
 		if (fButtonControls != null) {
 			for (int i = 0; i < fButtonControls.length; i++) {
 				if (e.widget == fButtonControls[i]) {