Eclipse CDT "Path must include project and resource name"

Question

Hi there,

I've been banging my head against a brick wall with this, so any help will be much appreciated :)

I have created two projects with the following structure.

1. There is one source folder under C:\ide\xxx\source
2. There is a project folder under C:\ide\xxx\build1
3. There is a project folder under C:\ide\xxx\build2
4. Both build1 and build2 include the linked folder C:\ide\xxx\source using the variable MYBUILD_ROOT="C:\ide\xxx".

build2 compiles just fine using the internal builder. However, build1 doesn't even start to build because it reports

> **** Rebuild of configuration Release for project CoreMarkTs1 ****
> 
> **** Internal Builder is used for build               **** 
> Build error
> Path must include project and resource
> name: /build1

Any help would be much appreciated,

Cheers, James