### Eclipse Workspace Patch 1.0
#P IvyDE_trunk
Index: org.apache.ivyde.eclipse/src/java/org/apache/ivyde/eclipse/cp/SettingsSetup.java
===================================================================
--- org.apache.ivyde.eclipse/src/java/org/apache/ivyde/eclipse/cp/SettingsSetup.java	(revision 1585975)
+++ org.apache.ivyde.eclipse/src/java/org/apache/ivyde/eclipse/cp/SettingsSetup.java	(working copy)
@@ -17,12 +17,15 @@
  */
 package org.apache.ivyde.eclipse.cp;
 
+import java.io.File;
 import java.util.ArrayList;
 import java.util.Iterator;
 import java.util.List;
 
 import org.apache.ivyde.eclipse.IvyDEException;
+import org.apache.ivyde.internal.eclipse.IvyDEMessage;
 import org.eclipse.core.resources.IProject;
+import org.eclipse.core.resources.IResourceStatus;
 import org.eclipse.core.runtime.CoreException;
 import org.eclipse.core.variables.IStringVariableManager;
 import org.eclipse.core.variables.VariablesPlugin;
@@ -72,20 +75,28 @@
     }
 
     public List getResolvedPropertyFiles() throws IvyDEException {
-        List resolvedProps = new ArrayList();
+        List resolvedPropertyFiles = new ArrayList();
         IStringVariableManager manager = VariablesPlugin.getDefault().getStringVariableManager();
-        try {
-            Iterator it = propertyFiles.iterator();
-            while (it.hasNext()) {
-                String propFile = (String) it.next();
-                String resolvedProp = manager.performStringSubstitution(propFile, false);
-                resolvedProps.add(resolvedProp);
+        Iterator it = propertyFiles.iterator();
+        while (it.hasNext()) {
+            String propertyFile = (String) it.next();
+            try {
+                String resolvedPropertyFile = manager.performStringSubstitution(propertyFile, false);
+                if (new File(resolvedPropertyFile).exists()) {
+                    resolvedPropertyFiles.add(resolvedPropertyFile);
+                } else {
+                    IvyDEMessage.verbose("Property file " + propertyFile + " does not exist");
+                }
+            } catch (CoreException e) {
+                if (e.getStatus().getCode() == IResourceStatus.RESOURCE_NOT_FOUND) {
+                    IvyDEMessage.verbose("Property file resource " + propertyFile + " not found");
+                } else {
+                    throw new IvyDEException("Unrecognized variables",
+                            "Unrecognized variables in property path " + propertyFile, e);
+                }
             }
-        } catch (CoreException e) {
-            throw new IvyDEException("Unrecognized variables",
-                    "Unrecognized variables in the Ivy settings file " + ivySettingsPath, e);
         }
-        return resolvedProps;
+        return resolvedPropertyFiles;
     }
 
     public void setPropertyFiles(List propertyFiles) {