diff --git a/core/org.eclipse.cdt.ui/ChangeLog b/core/org.eclipse.cdt.ui/ChangeLog
index 3feea3a6904..18c2c20f271 100644
--- a/core/org.eclipse.cdt.ui/ChangeLog
+++ b/core/org.eclipse.cdt.ui/ChangeLog
@@ -1,3 +1,7 @@
+2004-06-15 Bogdan Gheorghe
+	Fix for Bug 63957: Error with external search markers - changed label
+	provider to provide proper paths for external links
+	
 2004-06-15 Bogdan Gheorghe
 	Disable background type cache on startup for now
 	
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/preferences/CSearchPreferencePage.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/preferences/CSearchPreferencePage.java
index 966a18eec90..b7eede69768 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/preferences/CSearchPreferencePage.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/preferences/CSearchPreferencePage.java
@@ -216,8 +216,8 @@ public class CSearchPreferencePage extends PreferencePage
 	 * @param store
 	 */
 	public static void initDefaults(IPreferenceStore store) {
-		store.setDefault(CSearchPage.EXTERNALMATCH_ENABLED, true);
-		store.setDefault(CSearchPage.EXTERNALMATCH_VISIBLE, 1);
+		store.setDefault(CSearchPage.EXTERNALMATCH_ENABLED, false);
+		store.setDefault(CSearchPage.EXTERNALMATCH_VISIBLE, 0);
 		store.setDefault(SourceIndexer.CDT_INDEXER_TIMEOUT,TIMEOUT_VALUE);
 	}
 	
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/search/NewSearchResultCollector.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/search/NewSearchResultCollector.java
index d0e0f353d3d..4beb55720ca 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/search/NewSearchResultCollector.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/search/NewSearchResultCollector.java
@@ -87,7 +87,7 @@ public class NewSearchResultCollector extends BasicSearchResultCollector {
           	IFile refFile = CCorePlugin.getWorkspace().getRoot().getFileForLocation(refLocation);
           	IProject refProject = refFile.getProject();
           	IPath externalMatchLocation = searchMatch.getLocation();
-          	IFile linksFile = refProject.getFile("_cdtsrchlnk_" + externalMatchLocation.lastSegment()); //$NON-NLS-1$
+          	IFile linksFile = getUniqueFile(externalMatchLocation, refProject);
             //Delete links file to keep up to date with latest prefs
           	if (linksFile.exists() &&
           		linksFile.isLinked())
@@ -106,6 +106,7 @@ public class NewSearchResultCollector extends BasicSearchResultCollector {
           		
           	}
           	searchMatch.resource = linksFile;
+          	searchMatch.path = externalMatchLocation;
         	fMatchCount++;
     		int start = match.getStartOffset();
     		int end = match.getEndOffset();
@@ -117,6 +118,38 @@ public class NewSearchResultCollector extends BasicSearchResultCollector {
       return false;
 	
 	}
+
+
+	/**
+	 * @param externalMatchLocation
+	 * @param refProject
+	 * @return
+	 */
+	private IFile getUniqueFile(IPath externalMatchLocation, IProject refProject) {
+		IFile file = null;
+		String fileName = ""; //$NON-NLS-1$
+		//Total number of segments in file name
+		int segments = externalMatchLocation.segmentCount() - 1;
+		for (int linkNumber=0; linkNumber<Integer.MAX_VALUE; linkNumber++){
+			if (fileName !="") //$NON-NLS-1$
+				fileName = "lnk" + linkNumber + "_" + externalMatchLocation.segment(segments); //$NON-NLS-1$ //$NON-NLS-2$
+			else
+				fileName = externalMatchLocation.segment(segments);
+			
+			file=refProject.getFile(fileName);
+		    IPath path = file.getLocation();
+			
+		    //If the location passed in is equal to a location of a file
+		    //that is already linked then return the file
+		    if (externalMatchLocation.equals(path))
+		    	break;
+		    
+		    //If the file doesn't already exist in the workspace return
+		    if (!file.exists())
+				break;
+		}
+		return file;
+	}
 	
 	
 }
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/CSearchResultLabelProvider.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/CSearchResultLabelProvider.java
index 58e63560721..980d868b732 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/CSearchResultLabelProvider.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/CSearchResultLabelProvider.java
@@ -158,7 +158,15 @@ public class CSearchResultLabelProvider extends LabelProvider {
 		IResource resource = match.getResource();
 		
 		String result = ""; //$NON-NLS-1$
-		String path = (resource != null ) ? resource.getFullPath().toString() : ""; //$NON-NLS-1$
+		String path = "";  //$NON-NLS-1$
+		if (resource != null){
+			if (resource.isLinked()){
+				path = match.getLocation().toOSString();
+			}
+			else{
+				path = resource.getFullPath().toOSString();
+			}
+		}
 		
 		switch( getOrder() ){
 			case SHOW_NAME_ONLY: