Index: src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java
===================================================================
--- src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java	(revision 1344554)
+++ src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java	(working copy)
@@ -26,6 +26,7 @@
 import org.eclipse.swt.SWT;
 import org.eclipse.swt.layout.GridData;
 import org.eclipse.swt.layout.GridLayout;
+import org.eclipse.swt.widgets.Button;
 import org.eclipse.swt.widgets.Composite;
 import org.eclipse.swt.widgets.Control;
 import org.eclipse.swt.widgets.Label;
@@ -50,6 +51,8 @@
 
     private StandaloneRetrieveSetup setup;
 
+    private Button resolveInWorkspaceCheck;
+
     protected EditStandaloneRetrieveDialog(Shell parentShell, IProject project,
             StandaloneRetrieveSetup retrieveSetup) {
         super(parentShell);
@@ -75,7 +78,7 @@
             retrieveSetup.getSettingsSetup());
         ivyFilePathText.init(retrieveSetup.getIvyXmlPath());
         retrieveComposite.init(retrieveSetup.getRetrieveSetup());
-
+        resolveInWorkspaceCheck.setSelection(retrieveSetup.isResolveInWorkspace());
         return tabs;
     }
 
@@ -105,6 +108,13 @@
         ivyFilePathText = new IvyFilePathText(ivyFileComposite, SWT.NONE, project);
         ivyFilePathText.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true, false));
 
+        resolveInWorkspaceCheck = new Button(body, SWT.CHECK);
+        resolveInWorkspaceCheck.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true,
+                false, 2, 1));
+        resolveInWorkspaceCheck.setText("Resolve dependencies in workspace");
+        resolveInWorkspaceCheck
+                .setToolTipText("Will replace jars on the classpath with workspace projects");
+
         retrieveComposite = new RetrieveComposite(body, SWT.NONE, true);
         retrieveComposite.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true, false));
 
@@ -117,6 +127,7 @@
         setup.setSettingsSetup(settingsTab.getSettingsEditor().getIvySettingsSetup());
         setup.setIvyXmlPath(ivyFilePathText.getIvyFilePath());
         setup.setRetrieveSetup(retrieveComposite.getRetrieveSetup());
+        setup.setResolveInWorkspace(resolveInWorkspaceCheck.getSelection());
         super.okPressed();
     }
 
Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java
===================================================================
--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java	(revision 1344554)
+++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java	(working copy)
@@ -52,7 +52,7 @@
     }
 
     protected boolean isResolveInWorkspace() {
-        return false;
+        return setup.isResolveInWorkspace();
     }
 
 }
Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java
===================================================================
--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java	(revision 1344554)
+++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java	(working copy)
@@ -76,6 +76,8 @@
 
     private static final String RETRIEVE_PATTERN = "pattern";
 
+    private static final String RESOLVE_IN_WORKSPACE = "resolveInWorkspace";
+
     public void write(OutputStream out, List/* <StandaloneRetrieveSetup> */setuplist)
             throws IOException {
         try {
@@ -98,6 +100,10 @@
                 attr.setValue(setup.getName());
                 attributes.setNamedItem(attr);
 
+                attr = document.createAttribute(RESOLVE_IN_WORKSPACE);
+                attr.setValue(Boolean.toString(setup.isResolveInWorkspace()));
+                attributes.setNamedItem(attr);
+
                 if (setup.isSettingProjectSpecific()) {
                     Node settingsNode = document.createElement(IVYSETTINGS);
                     node.appendChild(settingsNode);
@@ -206,6 +212,11 @@
 
                 NamedNodeMap attributes = node.getAttributes();
                 setup.setName(getAttribute(attributes, SETUP_NAME));
+                
+                Node attr = attributes.getNamedItem(RESOLVE_IN_WORKSPACE);
+                if ( attr != null ) {
+                    setup.setResolveInWorkspace(Boolean.valueOf(attr.getNodeValue()).booleanValue());
+                }
 
                 NodeList children = node.getChildNodes();
                 for (int j = 0; j < children.getLength(); j++) {
Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java
===================================================================
--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java	(revision 1344554)
+++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java	(working copy)
@@ -23,6 +23,8 @@
 
 public class StandaloneRetrieveSetup {
 
+    private boolean resolveInWorkspace;
+
     private String name = "dependencies";
 
     private SettingsSetup settingsSetup = new SettingsSetup();
@@ -41,6 +43,15 @@
         return state;
     }
 
+    public boolean isResolveInWorkspace() {
+        return resolveInWorkspace;
+    }
+
+    public void setResolveInWorkspace(boolean resolveInWorkspace) {
+        this.resolveInWorkspace = resolveInWorkspace;
+    }
+
+
     public String getName() {
         return name;
     }
Index: org.apache.ivyde.eclipse.patch
===================================================================
--- org.apache.ivyde.eclipse.patch	(revision 0)
+++ org.apache.ivyde.eclipse.patch	(revision 0)
@@ -0,0 +1,130 @@
+Index: src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java
+===================================================================
+--- src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java	(revision 1344554)
++++ src/java/org/apache/ivyde/eclipse/ui/preferences/EditStandaloneRetrieveDialog.java	(working copy)
+@@ -26,6 +26,7 @@
+ import org.eclipse.swt.SWT;
+ import org.eclipse.swt.layout.GridData;
+ import org.eclipse.swt.layout.GridLayout;
++import org.eclipse.swt.widgets.Button;
+ import org.eclipse.swt.widgets.Composite;
+ import org.eclipse.swt.widgets.Control;
+ import org.eclipse.swt.widgets.Label;
+@@ -50,6 +51,8 @@
+ 
+     private StandaloneRetrieveSetup setup;
+ 
++    private Button resolveInWorkspaceCheck;
++
+     protected EditStandaloneRetrieveDialog(Shell parentShell, IProject project,
+             StandaloneRetrieveSetup retrieveSetup) {
+         super(parentShell);
+@@ -75,7 +78,7 @@
+             retrieveSetup.getSettingsSetup());
+         ivyFilePathText.init(retrieveSetup.getIvyXmlPath());
+         retrieveComposite.init(retrieveSetup.getRetrieveSetup());
+-
++        resolveInWorkspaceCheck.setSelection(retrieveSetup.isResolveInWorkspace());
+         return tabs;
+     }
+ 
+@@ -105,6 +108,13 @@
+         ivyFilePathText = new IvyFilePathText(ivyFileComposite, SWT.NONE, project);
+         ivyFilePathText.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true, false));
+ 
++        resolveInWorkspaceCheck = new Button(body, SWT.CHECK);
++        resolveInWorkspaceCheck.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true,
++                false, 2, 1));
++        resolveInWorkspaceCheck.setText("Resolve dependencies in workspace");
++        resolveInWorkspaceCheck
++                .setToolTipText("Will replace jars on the classpath with workspace projects");
++
+         retrieveComposite = new RetrieveComposite(body, SWT.NONE, true);
+         retrieveComposite.setLayoutData(new GridData(GridData.FILL, GridData.FILL, true, false));
+ 
+@@ -117,6 +127,7 @@
+         setup.setSettingsSetup(settingsTab.getSettingsEditor().getIvySettingsSetup());
+         setup.setIvyXmlPath(ivyFilePathText.getIvyFilePath());
+         setup.setRetrieveSetup(retrieveComposite.getRetrieveSetup());
++        setup.setResolveInWorkspace(resolveInWorkspaceCheck.getSelection());
+         super.okPressed();
+     }
+ 
+Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java
+===================================================================
+--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java	(revision 1344554)
++++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetupState.java	(working copy)
+@@ -52,7 +52,7 @@
+     }
+ 
+     protected boolean isResolveInWorkspace() {
+-        return false;
++        return setup.isResolveInWorkspace();
+     }
+ 
+ }
+Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java
+===================================================================
+--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java	(revision 1344554)
++++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSerializer.java	(working copy)
+@@ -76,6 +76,8 @@
+ 
+     private static final String RETRIEVE_PATTERN = "pattern";
+ 
++    private static final String RESOLVE_IN_WORKSPACE = "resolveInWorkspace";
++
+     public void write(OutputStream out, List/* <StandaloneRetrieveSetup> */setuplist)
+             throws IOException {
+         try {
+@@ -98,6 +100,10 @@
+                 attr.setValue(setup.getName());
+                 attributes.setNamedItem(attr);
+ 
++                attr = document.createAttribute(RESOLVE_IN_WORKSPACE);
++                attr.setValue(Boolean.toString(setup.isResolveInWorkspace()));
++                attributes.setNamedItem(attr);
++
+                 if (setup.isSettingProjectSpecific()) {
+                     Node settingsNode = document.createElement(IVYSETTINGS);
+                     node.appendChild(settingsNode);
+@@ -206,6 +212,11 @@
+ 
+                 NamedNodeMap attributes = node.getAttributes();
+                 setup.setName(getAttribute(attributes, SETUP_NAME));
++                
++                Node attr = attributes.getNamedItem(RESOLVE_IN_WORKSPACE);
++                if ( attr != null ) {
++                    setup.setResolveInWorkspace(Boolean.valueOf(attr.getNodeValue()).booleanValue());
++                }
+ 
+                 NodeList children = node.getChildNodes();
+                 for (int j = 0; j < children.getLength(); j++) {
+Index: src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java
+===================================================================
+--- src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java	(revision 1344554)
++++ src/java/org/apache/ivyde/eclipse/retrieve/StandaloneRetrieveSetup.java	(working copy)
+@@ -23,6 +23,8 @@
+ 
+ public class StandaloneRetrieveSetup {
+ 
++    private boolean resolveInWorkspace;
++
+     private String name = "dependencies";
+ 
+     private SettingsSetup settingsSetup = new SettingsSetup();
+@@ -41,6 +43,15 @@
+         return state;
+     }
+ 
++    public boolean isResolveInWorkspace() {
++        return resolveInWorkspace;
++    }
++
++    public void setResolveInWorkspace(boolean resolveInWorkspace) {
++        this.resolveInWorkspace = resolveInWorkspace;
++    }
++
++
+     public String getName() {
+         return name;
+     }