Problems occurred moving the selected resources. Path for project must have only one segment. Path for project must have only one segment.

Eclipse is really tragic. One of the biggest "balls-of-mud" in the history if IT.

Anyway hacking the com.bea.alsb.core.prefs by adding the project to container.referenced.projects as shown in this hack DID NOT take care of the issue.

I had to checkout the project from SVN by using the "use new project wizard", and assigning it to the OSB Configuration project while importing it.