Bug 39272 Java Model Exception when creating a project from scratch
I launched Eclipse 2.1 from a brand new Workspace and from there, created a Java project (called "Works") by pointing Eclipse to the root of my project. The process fails after a short while (whether I press Next or Finish after the first page of the wizard) with a dialog telling me to look at the log. I included the top of the log below (it's about 8k, I can post it in its entirety if there's interest). The error is Java Model Exception: Java Model Status [Works does not exist.] I get the same problem with Eclipse 3.0 M1: I can't create a new project.
org.eclipse.jdt.ui/ui/org/eclipse/jdt/internal/ui/wizards/buildpaths/BuildPathsBlock.java
newNatures[prevNatures.length]= JavaCore.NATURE_ID;
			description.setNatureIds(newNatures);
			project.setDescription(description, monitor);
		} else {
			monitor.worked(1);
		}
	}
	
	public void configureJavaProject(IProgressMonitor monitor) throws CoreException, InterruptedException {
		if (monitor == null) {
			monitor= new NullProgressMonitor();
		}
		monitor.setTaskName(NewWizardMessages.getString("BuildPathsBlock.operationdesc_java")); 
		monitor.beginTask("", 10); 
		try {
			Shell shell= null;
			if (fSWTWidget != null && !fSWTWidget.getShell().isDisposed()) {
				shell= fSWTWidget.getShell();
			}
			
			internalConfigureJavaProject(fClassPathList.getElements(), getOutputLocation(), shell, monitor);
		} finally {
			monitor.done();
		}
	}
	
	/**
	 * Creates the Java project and sets the configured build path and output location.
	 * If the project already exists only build paths are updated.
	 */