diff --git a/eclipse/src/plugin-resources/templates/classpath.jelly b/eclipse/src/plugin-resources/templates/classpath.jelly
index 470cbfad..dc470374 100644
--- a/eclipse/src/plugin-resources/templates/classpath.jelly
+++ b/eclipse/src/plugin-resources/templates/classpath.jelly
@@ -149,7 +149,8 @@
         <!-- make sure it's a classpath dependency -->
         <j:set var="isClasspath" value="${lib.dependency.isAddedToClasspath()}"/>
         <j:if test="${isClasspath}">
-          <classpathentry kind="var" path="MAVEN_REPO${lib.urlPath}"/>
+          <maven:makeRelativePath var="relativePath" basedir="${maven.repo.local}" path="${lib.path}"/>
+          <classpathentry kind="var" path="MAVEN_REPO/${relativePath}"/>
         </j:if>
       </j:otherwise>
     </j:choose>
diff --git a/eclipse/src/plugin-test/maven.xml b/eclipse/src/plugin-test/maven.xml
index fc91cf35..db129216 100644
--- a/eclipse/src/plugin-test/maven.xml
+++ b/eclipse/src/plugin-test/maven.xml
@@ -38,7 +38,7 @@
     
     <u:file var="classpathFile" name="${dotClasspath}"/>
     <x:parse var="classpathDoc" xml="${classpathFile.toURL()}" />
-    <x:set var="countJUnit" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/junit/jars/junit-3.8.1.jar')])"/>    
+    <x:set var="countJUnit" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/junit\jars\junit-3.8.1.jar')])"/>    
     <assert:assertEquals expected="1" value="${countJUnit.intValue().toString()}" msg="JUnit dependency not found"/> 
     <x:set var="countCactus" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/cactus/jars/cactus-13-1.6.1.jar')])"/>    
     <assert:assertEquals expected="1" value="${countCactus.intValue().toString()}" msg="More than one Cactus dependencies found"/> 
@@ -111,7 +111,7 @@
     <u:file var="classpathFile" name="${dotClasspath}"/>
     <x:parse var="classpathDoc" xml="${classpathFile.toURL()}" />
     <x:set var="count" select="count($classpathDoc/classpath/classpathentry[contains(@kind,'src')])"/>
-    <assert:assertEquals expected="3" value="${count.intValue().toString()}"/>  
+    <assert:assertEquals expected="3" value="${count.intValue().toString()}" msg="Not enough generated src directories found"/>  
 
   </goal>
   
@@ -123,8 +123,10 @@
 
     <u:file var="classpathFile" name="${dotClasspath}"/>
     <x:parse var="classpathDoc" xml="${classpathFile.toURL()}" />
-    <x:set var="count" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/maven/jars/maven.jar')])"/>
-    <assert:assertEquals expected="1" value="${count.intValue().toString()}"/>  
+    <x:set var="count" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/maven\jars\maven.jar')])"/>
+    <assert:assertEquals expected="1" value="${count.intValue().toString()}" msg="override by jar tag not found"/>  
+	<x:set var="count" select="count($classpathDoc/classpath/classpathentry[contains(@path,'MAVEN_REPO/commons-logging\jars\commons-logging-1.0.3.jar')])"/>
+    <assert:assertEquals expected="1" value="${count.intValue().toString()}" msg="maven.jar.override didn't work"/>      
 
   </goal>  
 
diff --git a/eclipse/src/plugin-test/project.properties b/eclipse/src/plugin-test/project.properties
index 901a2a6f..ae3b577a 100644
--- a/eclipse/src/plugin-test/project.properties
+++ b/eclipse/src/plugin-test/project.properties
@@ -1 +1,3 @@
-cactus.src.dir=.
\ No newline at end of file
+cactus.src.dir=.
+maven.jar.override=on
+maven.jar.commons-dude=${maven.repo.local}/commons-logging/jars/commons-logging-1.0.3.jar
\ No newline at end of file
diff --git a/eclipse/src/plugin-test/project.xml b/eclipse/src/plugin-test/project.xml
index cfacc088..12f97b2b 100644
--- a/eclipse/src/plugin-test/project.xml
+++ b/eclipse/src/plugin-test/project.xml
@@ -53,6 +53,13 @@
   </developers>
 
   <dependencies>
+	<dependency>
+	  <groupId>facts</groupId>
+  	  <artifactId>commons-dude</artifactId>
+	  <version>1.0.3</version>
+	  <type>jar</type>
+	  <properties/>
+	</dependency>  
     <dependency>
       <id>maven</id>
       <version>beta-8</version>
diff --git a/eclipse/xdocs/changes.xml b/eclipse/xdocs/changes.xml
index f4036cca..6107c2b9 100644
--- a/eclipse/xdocs/changes.xml
+++ b/eclipse/xdocs/changes.xml
@@ -25,7 +25,7 @@
   </properties>
   <body>
     <release version="1.9" date="in cvs">
-      <action dev="epugh" type="fix" issue="MPECLIPSE-38">Jar overrides are not supported.  Unit test to verify fix</action>
+      <action dev="epugh" type="fix" issue="MPECLIPSE-38">Jar overrides are now properly supported.</action>
     </release>
     <release version="1.8" date="2004-08-14">
       <action dev="epugh" type="fix" issue="MPECLIPSE-37" due-to="Felipe Leme">Fixed a 'race condition' where Cactus dependency is added twice to .classpath.</action>