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
if (!linkTargetFile.isDirectory())
                return new StatusInfo(IStatus.ERROR, NewWizardMessages.NewFolderDialog_linkTargetNotFolder); 
            return new StatusInfo();
        }
        
        /**
         * Tries to resolve the value entered in the link target field as 
         * a variable, if the value is a relative path.
         * Displays the resolved value if the entered value is a variable.
         */
        private String resolveVariable() {
            IPathVariableManager pathVariableManager = ResourcesPlugin.getWorkspace().getPathVariableManager();
            IPath path= Path.fromOSString(fDependenciesGroup.getLinkTarget());
            IPath resolvedPath= pathVariableManager.resolvePath(path);
            return resolvedPath.toOSString();
        }
                
        /**
         * Checks if the folder name is valid.
         *
         * @return <code>true</code> if validation was
         * correct, <code>false</code> otherwise
         */
        private IStatus validateFolderName(String name) {
            if (name.length() == 0) { 
            	return new StatusInfo(IStatus.ERROR, NewWizardMessages.NewFolderDialog_folderNameEmpty); 
            }
            
            IStatus nameStatus = fContainer.getWorkspace().validateName(name, IResource.FOLDER);
            if (!nameStatus.matches(IStatus.ERROR)) {