Index: src/main/java/org/apache/karaf/deployer/war/WarDeploymentListener.java
===================================================================
--- src/main/java/org/apache/karaf/deployer/war/WarDeploymentListener.java	(revision 958970)
+++ src/main/java/org/apache/karaf/deployer/war/WarDeploymentListener.java	(working copy)
@@ -18,50 +18,148 @@
 package org.apache.karaf.deployer.war;
 
 import java.io.File;
+import java.io.IOException;
+import java.io.InputStream;
 import java.net.URL;
 import java.util.jar.Attributes;
 import java.util.jar.JarEntry;
 import java.util.jar.JarFile;
+import java.util.jar.JarInputStream;
 import java.util.jar.Manifest;
 
+import javax.xml.parsers.DocumentBuilder;
+import javax.xml.parsers.DocumentBuilderFactory;
+import javax.xml.parsers.ParserConfigurationException;
+
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
 import org.apache.felix.fileinstall.ArtifactUrlTransformer;
+import org.w3c.dom.Document;
+import org.w3c.dom.Node;
+import org.w3c.dom.NodeList;
+import org.xml.sax.ErrorHandler;
+import org.xml.sax.SAXException;
+import org.xml.sax.SAXParseException;
 
 /**
  * A deployment listener that listens for war deployements.
  */
 public class WarDeploymentListener implements ArtifactUrlTransformer {
 
-    private static final Log LOGGER = LogFactory.getLog(WarDeploymentListener.class);
+	private static final Log LOGGER = LogFactory
+			.getLog(WarDeploymentListener.class);
 
-    public boolean canHandle(File artifact) {
-        try {
-            JarFile jar = new JarFile(artifact);
-            JarEntry entry = jar.getJarEntry("WEB-INF/web.xml");
-            // Only handle WAR artifacts
-            if (entry == null) {
-                return false;
-            }
-            // Only handle non OSGi bundles
-            Manifest m = jar.getManifest();
-            if (m.getMainAttributes().getValue(new Attributes.Name("Bundle-SymbolicName")) != null &&
-                m.getMainAttributes().getValue(new Attributes.Name("Bundle-Version")) != null) {
-                return false;
-            }
-            return true;
-        } catch (Exception e) {
-            return false;
-        }
-    }
+	private DocumentBuilderFactory dbf;
 
-    public URL transform(URL artifact) throws Exception {
-        try {
-            return new URL("war", null, artifact.toString());
-        } catch (Exception e) {
-            LOGGER.error("Unable to build war bundle", e);
-            return null;
-        }
-    }
+	public boolean canHandle(File artifact) {
+		try {
+			JarFile jar = new JarFile(artifact);
+			JarEntry entry = jar.getJarEntry("WEB-INF/web.xml");
+			// Only handle WAR artifacts
+			if (entry == null) {
+				return false;
+			}
+			// Only handle non OSGi bundles
+			Manifest m = jar.getManifest();
+			if (m.getMainAttributes().getValue(
+					new Attributes.Name("Bundle-SymbolicName")) != null
+					&& m.getMainAttributes().getValue(
+							new Attributes.Name("Bundle-Version")) != null) {
+				return false;
+			}
+			return true;
+		} catch (Exception e) {
+			return false;
+		}
+	}
 
+	public URL transform(URL artifact) throws Exception {
+
+		String path = artifact.getPath();
+		String protocol = artifact.getProtocol();
+
+		int lastSlash = 0;
+		
+		if ("jardir".equalsIgnoreCase(protocol)) {
+			lastSlash = path.lastIndexOf(File.separator); 
+			// match the last File.seperator to
+			// retrieve the name of the archive
+		} else {
+			lastSlash = path.lastIndexOf(File.separator); 
+			// match the last slash to
+			// retrieve the name of the archive
+		}
+		int suffixPos = path.lastIndexOf(".war"); // match the suffix so we get
+													// rid of it for displaying
+
+		// Fall back if there is no display-name set in the web.xml or if the
+		// web.xml can't be read.
+		String displayName = path.substring(lastSlash + 1, suffixPos);
+		try {
+			// step through the jar to find the web.xml
+			JarInputStream jar = new JarInputStream(artifact.openStream());
+			JarEntry nextJarEntry = jar.getNextJarEntry();
+			boolean found = false;
+			while (nextJarEntry != null) {
+				if (nextJarEntry.getName().indexOf("web.xml") != -1
+						&& !nextJarEntry.isDirectory()) {
+					Document doc = parse(jar); // found the web.xml
+					NodeList nodeList = doc.getDocumentElement()
+							.getChildNodes(); // getElementsByTagName("display-name");
+					for (int i = 0; i < nodeList.getLength(); i++) {
+						Node item = nodeList.item(i);
+						String nodeName = item.getNodeName();
+						if ("display-name".equalsIgnoreCase(nodeName)) {
+							String nodeValue = item.getFirstChild()
+									.getNodeValue();
+							if (nodeValue != null) {
+								displayName = nodeValue;
+							}
+							found = true;
+							jar.close();
+							break;
+						}
+					}
+				}
+				if (found)
+					break;
+				else
+					nextJarEntry = jar.getNextJarEntry();
+			}
+			// alter the original URL artifact
+		} catch (Exception e) {
+			LOGGER.warn("Unable to create Weapp-Context from web.xml", e);
+		}
+		return new URL("war", null, protocol + ":" + path + "?Webapp-Context="
+				+ displayName);
+	}
+
+	private Document parse(InputStream inputStream)
+			throws ParserConfigurationException, SAXException, IOException {
+		if (dbf == null) {
+			dbf = DocumentBuilderFactory.newInstance();
+			dbf.setNamespaceAware(true);
+		}
+
+		DocumentBuilder db = dbf.newDocumentBuilder();
+		db.setErrorHandler(new ErrorHandler() {
+
+			public void warning(SAXParseException exception)
+					throws SAXException {
+				// ignore waring
+			}
+
+			public void fatalError(SAXParseException exception)
+					throws SAXException {
+				throw exception;
+			}
+
+			public void error(SAXParseException exception) throws SAXException {
+				throw exception;
+			}
+		});
+
+		return db.parse(inputStream);
+	}
+
 }