Index: src/java/org/apache/ivyde/eclipse/cpcontainer/IvyClasspathContainerConfiguration.java
===================================================================
--- src/java/org/apache/ivyde/eclipse/cpcontainer/IvyClasspathContainerConfiguration.java	(revision 794086)
+++ src/java/org/apache/ivyde/eclipse/cpcontainer/IvyClasspathContainerConfiguration.java	(working copy)
@@ -621,8 +621,44 @@
                 String file = (String) iter.next();
                 InputStream is;
                 Path p = new Path(file);
-                if (javaProject != null && !p.isAbsolute()) {
+                if (file.startsWith(PROJECT_SCHEME_PREFIX)) {
+                    int pathIndex = file.indexOf("/", PROJECT_SCHEME_PREFIX_LENGTH);
+                    String projectName = file.substring(PROJECT_SCHEME_PREFIX_LENGTH, pathIndex);
+                    String path = file.substring(pathIndex + 1);
+                    File propertyFile;
+                    if (!"".equals(projectName)) {
+                        IResource resource = ResourcesPlugin.getWorkspace().getRoot().findMember(
+                            projectName);
+                        if (resource == null) {
+                            IvyDEException ex = new IvyDEException("Project '" + projectName
+                                    + "' not found", "The project name '" + projectName
+                                    + "' from '" + file + "' was not found", null);
+                            setConfStatus(ex);
+                            throw ex;
+                        }
+                        propertyFile = resource.getProject().getFile(path).getLocation().toFile();
+                        if (!propertyFile.exists()) {
+                            IvyDEException ex = new IvyDEException("Ivy properties file not found",
+                                    "The Ivy properties file '" + path
+                                            + "' cannot be found in project '" + projectName + "'",
+                                    null);
+                            setConfStatus(ex);
+                            throw ex;
+                        }
+                    } else {
+                        propertyFile = javaProject.getProject().getFile(path).getLocation()
+                                .toFile();
+                    }
                     try {
+                        is = new FileInputStream(propertyFile);
+                    } catch (FileNotFoundException e) {
+                        IvyDEException ex = new IvyDEException("Property file not found",
+                                "The property file '" + file + "' was not found", e);
+                        setConfStatus(ex);
+                        throw ex;
+                    }
+                } else if (javaProject != null && !p.isAbsolute()) {
+                    try {
                         is = new FileInputStream(javaProject.getProject().getFile(file)
                                 .getFullPath().toFile());
                     } catch (FileNotFoundException e) {