diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/scanner/InclusionTests.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/scanner/InclusionTests.java
index df9f50669b6..ee831d04483 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/scanner/InclusionTests.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/scanner/InclusionTests.java
@@ -78,24 +78,25 @@ public class InclusionTests extends PreprocessorTestsBase {
 	}
 
     public void testIncludeNext() throws Exception	{    	
-    	String baseFile = "int zero; \n#include \"bar/foo.h\""; //$NON-NLS-1$
+    	String baseFile = "int zero; \n#include \"foo.h\""; //$NON-NLS-1$
     	String i1Next = "int one; \n#include_next <bar/foo.h>"; //$NON-NLS-1$
     	String i2Next = "int two; \n#include_next \"bar/foo.h\""; //$NON-NLS-1$
     	String i3Next = "int three; \n"; //$NON-NLS-1$
 
-    	IFolder barf = importFolder("bar"); //$NON-NLS-1$
-    	IFolder twof = importFolder("two"); //$NON-NLS-1$
-    	IFolder twobarf = importFolder("two/bar"); //$NON-NLS-1$
-    	IFolder threef = importFolder("three"); //$NON-NLS-1$
-    	IFolder threebarf = importFolder("three/bar"); //$NON-NLS-1$
+    	IFolder one = importFolder("one"); //$NON-NLS-1$
+    	IFolder oneTwo = importFolder("one/two"); //$NON-NLS-1$
+    	IFolder oneTwoBar = importFolder("one/two/bar"); //$NON-NLS-1$
+    	IFolder oneThree = importFolder("one/three"); //$NON-NLS-1$
+    	IFolder oneThreeBar = importFolder("one/three/bar"); //$NON-NLS-1$
     	IFile base = importFile("base.cpp", baseFile); //$NON-NLS-1$
-    	importFile("bar/foo.h", i1Next); //$NON-NLS-1$
-    	importFile("two/bar/foo.h", i2Next); //$NON-NLS-1$
-    	importFile("three/bar/foo.h", i3Next); //$NON-NLS-1$
+    	importFile("one/foo.h", i1Next); //$NON-NLS-1$
+    	importFile("one/two/bar/foo.h", i2Next); //$NON-NLS-1$
+    	importFile("one/three/bar/foo.h", i3Next); //$NON-NLS-1$
     	
-    	String [] path = new String[2];
-    	path[0] = twof.getLocation().toOSString();
-    	path[1] = threef.getLocation().toOSString();
+    	String[] path = new String[3];
+    	path[0] = one.getLocation().toOSString();
+    	path[1] = oneTwo.getLocation().toOSString();
+    	path[2] = oneThree.getLocation().toOSString();
     	
     	IScannerInfo scannerInfo = new ExtendedScannerInfo(Collections.EMPTY_MAP, path, new String[]{}, null);
     	CodeReader reader= new CodeReader(base.getLocation().toString());
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner/CPreprocessor.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner/CPreprocessor.java
index 66ceb42ca42..30828f81305 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner/CPreprocessor.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner/CPreprocessor.java
@@ -757,11 +757,11 @@ public class CPreprocessor implements ILexerLog, IScanner, IAdaptable {
     }
 
     private int findIncludePos(String[] paths, File currentDirectory) {
-        for (int i = 0; i < paths.length; ++i) {
-        	File pathDir = new File(paths[i]);
-        	for (File dir = currentDirectory; dir != null; dir = dir.getParentFile()) {
-        		if (dir.equals(pathDir))
-        			return i;
+    	for (; currentDirectory != null; currentDirectory = currentDirectory.getParentFile()) {
+	        for (int i = 0; i < paths.length; ++i) {
+	        	File pathDir = new File(paths[i]);
+	        	if (currentDirectory.equals(pathDir))
+	        		return i;
         	}
         }