Bug 97167 wrong proposals for linked folder in New Java Project>Link Additional Resource
org.eclipse.jdt.ui/ui/org/eclipse/jdt/internal/ui/wizards/buildpaths/newsourcepage/LinkFolderDialog.java
/**
     * Creates a new folder with the given name and optionally linking to
     * the specified link target.
     * 
     * @param folderName name of the new folder
     * @param linkTargetName name of the link target folder. may be null.
     * @return IFolder the new folder
     */
    private IFolder createNewFolder(final String folderName, final String linkTargetName) {
        final IFolder folderHandle = createFolderHandle(folderName);
        
        WorkspaceModifyOperation operation = new WorkspaceModifyOperation() {
            public void execute(IProgressMonitor monitor) throws CoreException {
                try {
                    monitor.beginTask(NewWizardMessages.NewFolderDialog_progress, 2000); 
                    if (monitor.isCanceled())
                        throw new OperationCanceledException();
                    
                        
                    folderHandle.createLink(Path.fromOSString(fDependenciesGroup.getLinkTarget()), IResource.ALLOW_MISSING_LOCAL, monitor);
                    
                    if (monitor.isCanceled())
                        throw new OperationCanceledException();
                } catch (StringIndexOutOfBoundsException e) {
                    e.printStackTrace();
                }
                finally {
                    monitor.done();
                }
            }