diff --git a/eclipse/project.xml b/eclipse/project.xml
index 38a2a5f2..bd57f3c6 100644
--- a/eclipse/project.xml
+++ b/eclipse/project.xml
@@ -23,7 +23,7 @@
   <pomVersion>3</pomVersion>
   <id>maven-eclipse-plugin</id>
   <name>Maven Eclipse Plugin</name>
-  <currentVersion>1.7</currentVersion>
+  <currentVersion>1.8-SNAPSHOT</currentVersion>
   <description>A plugin to generate various files for the Eclipse IDE and ease the use of Maven within that environment. Requires Maven 1.0 RC2.</description>
   <shortDescription>Eclipse Plugin for Maven</shortDescription>
   <url>http://maven.apache.org/reference/plugins/eclipse/</url>
diff --git a/eclipse/src/plugin-resources/templates/classpath.jelly b/eclipse/src/plugin-resources/templates/classpath.jelly
index d6a9b0d4..f8c57aae 100644
--- a/eclipse/src/plugin-resources/templates/classpath.jelly
+++ b/eclipse/src/plugin-resources/templates/classpath.jelly
@@ -47,6 +47,21 @@
     </j:forEach>
     <classpathentry kind="src" path="${srcDir}" excluding="${excluding}" />
   </j:if>
+
+        
+   <!-- Moved out from unitTestSourcePrsent condition since 1.12-->
+
+   <!-- Add the list of additional directories for the classpath from ${maven.eclipse.classpath.include}-->
+   	
+    <u:tokenize var="maven.eclipse.classpath.include.split" delim=",">${maven.eclipse.classpath.include}</u:tokenize>
+
+    <!-- add extra directories to be included in the classpath -->
+    <j:forEach var="res" items="${maven.eclipse.classpath.include.split}">
+      <classpathentry kind="src" path="${res}"/>
+    </j:forEach>
+
+
+
   
   <j:if test="${unitTestSourcesPresent}">
     <ant:echo>Contains JUnit tests</ant:echo>
@@ -63,14 +78,6 @@
     <ant:echo>Setting compile of ${testSrcDir} to ${testOutputDir}</ant:echo>
     <classpathentry kind="src" path="${testSrcDir}" output="${testOutputDir}"/>
 
-	<!-- split the list of additional directories for the classpath -->
-	
-    <u:tokenize var="maven.eclipse.classpath.include.split" delim=",">${maven.eclipse.classpath.include}</u:tokenize>
-
-    <!-- add extra directories to be included in the classpath -->
-    <j:forEach var="res" items="${maven.eclipse.classpath.include.split}">
-      <classpathentry kind="src" path="${res}"/>
-    </j:forEach>
 
     <!-- Here are the rules:
          If the project has maven.eclipse.junit property, add that ver of junit
diff --git a/eclipse/xdocs/changes.xml b/eclipse/xdocs/changes.xml
index 6545c151..7b421f5b 100644
--- a/eclipse/xdocs/changes.xml
+++ b/eclipse/xdocs/changes.xml
@@ -24,6 +24,9 @@
     <author email="dion@multitask.com.au">dIon Gillard</author>
   </properties>
   <body>
+    <release version="1.8" date="In CVS">
+      <action dev="evenisse" type="fix" issue="MPECLIPSE-29" due-to="Marc-Antoine Garrigue">Fix classpath generation when tests are not present</action>
+    </release>
     <release version="1.7" date="2004-05-15">
       <action dev="dion" type="update" issue="MPECLIPSE-23" due-to="Miguel Griffa">Document the eclipse.dependency property of the dependency element</action>
       <action dev="dion" type="update" issue="MPECLIPSE-25" due-to="Miguel Griffa">Add maven.eclipse.buildcommands and maven.eclipse.projectnatures properties, docs and test cases</action>
