diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/actions/ExcludeFromBuildAction.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/actions/ExcludeFromBuildAction.java
index 131ef25f690..6a2916ec6d4 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/actions/ExcludeFromBuildAction.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/ui/actions/ExcludeFromBuildAction.java
@@ -33,17 +33,19 @@ import org.eclipse.ui.IWorkbenchWindow;
 import org.eclipse.ui.IWorkbenchWindowPulldownDelegate2;
 import org.eclipse.ui.dialogs.ListSelectionDialog;
 
+import org.eclipse.cdt.core.CCorePlugin;
 import org.eclipse.cdt.core.model.CoreModel;
 import org.eclipse.cdt.core.model.ICContainer;
 import org.eclipse.cdt.core.model.ICElement;
 import org.eclipse.cdt.core.model.ICProject;
 import org.eclipse.cdt.core.model.ITranslationUnit;
 import org.eclipse.cdt.core.settings.model.ICConfigurationDescription;
-import org.eclipse.cdt.core.settings.model.ICFolderDescription;
 import org.eclipse.cdt.core.settings.model.ICProjectDescription;
-import org.eclipse.cdt.core.settings.model.ICResourceDescription;
+import org.eclipse.cdt.core.settings.model.ICSourceEntry;
+import org.eclipse.cdt.core.settings.model.util.CDataUtil;
 import org.eclipse.cdt.ui.CUIPlugin;
 import org.eclipse.cdt.ui.newui.AbstractPage;
+import org.eclipse.cdt.ui.newui.UIMessages;
 
 import org.eclipse.cdt.internal.ui.actions.ActionMessages;
 
@@ -82,16 +84,24 @@ implements IWorkbenchWindowPulldownDelegate2, IObjectActionDelegate {
 						if (res != null) {
 							ICConfigurationDescription[] cfgds = getCfgsRead(res);
 							if (cfgds == null || cfgds.length == 0) continue;
+							
 							if (objects == null) objects = new ArrayList();
 							objects.add(res);
 							if (cfgNames == null) {
 								cfgNames = new ArrayList(cfgds.length);
-								for (int j=0; j<cfgds.length; j++) 
+								for (int j=0; j<cfgds.length; j++) { 
+									if (!canExclude(res, cfgds[j])) {
+										cfgNames = null;
+										cfgsOK = false;
+										break;
+									}
 									cfgNames.add(cfgds[j].getName());
+								}
 							} else {
 								if (cfgNames.size() != cfgds.length) cfgsOK = false;
 								else for (int j=0; j<cfgds.length; j++) {
-									if (!cfgNames.contains(cfgds[j].getName())) {
+									if (! canExclude(res, cfgds[j]) ||
+										! cfgNames.contains(cfgds[j].getName())) {
 										cfgsOK = false;
 										break;
 									}
@@ -104,6 +114,22 @@ implements IWorkbenchWindowPulldownDelegate2, IObjectActionDelegate {
 		} 
 		action.setEnabled(cfgsOK && objects != null );
 	}
+
+	private boolean canExclude(IResource res, ICConfigurationDescription cfg) {
+		IPath p = res.getFullPath();
+		ICSourceEntry[] ent = cfg.getSourceEntries();
+		boolean state = CDataUtil.isExcluded(p, ent);
+		return CDataUtil.canExclude(p, (res instanceof IFolder), !state, ent);
+	}
+
+	private void setExclude(IResource res, ICConfigurationDescription cfg, boolean exclude) {
+		try {
+			ICSourceEntry[] newEntries = CDataUtil.setExcluded(res.getFullPath(), (res instanceof IFolder), exclude, cfg.getSourceEntries());
+			cfg.setSourceEntries(newEntries);
+		} catch (CoreException e) {
+			CCorePlugin.log(e);
+		}					
+	}
 	
 	public void run(IAction action) {
 		openDialog();
@@ -135,57 +161,46 @@ implements IWorkbenchWindowPulldownDelegate2, IObjectActionDelegate {
 		while(it.hasNext()) {
 			IResource res = (IResource)it.next();
 			ICConfigurationDescription[] cfgds = getCfgsRead(res);
-			IPath p = res.getProjectRelativePath();
+			IPath p = res.getFullPath();
 			for (int i=0; i<cfgds.length; i++) {
-				ICResourceDescription out = cfgds[i].getResourceDescription(p, false);
-				if (!out.isExcluded()) status[i] = true;
+				boolean b = CDataUtil.isExcluded(p, cfgds[i].getSourceEntries());
+				if (b) status[i] = true;
 			}
 		}
 		ArrayList lst = new ArrayList();
 		for (int i=0; i<status.length; i++) 
-			if (!status[i]) lst.add(cfgNames.get(i));
+			if (status[i]) lst.add(cfgNames.get(i));
 		if (lst.size() > 0)
 			dialog.setInitialElementSelections(lst);
 		
 		if (dialog.open() == Window.OK) {
 			Object[] selected = dialog.getResult(); // may be empty
 			Iterator it2 = objects.iterator();
-			outer:				
-				while(it2.hasNext()) {
-					IResource res = (IResource)it2.next();
-					IProject p = res.getProject();
-					if (!p.isOpen()) continue;
-					// get writable description
-					ICProjectDescription prjd = CoreModel.getDefault().getProjectDescription(p, true);
-					if (prjd == null) continue;
-					ICConfigurationDescription[] cfgds = prjd.getConfigurations();
-					IPath p2 = res.getProjectRelativePath();
-					for (int i=0; i<cfgds.length; i++) {
-						ICResourceDescription out = cfgds[i].getResourceDescription(p2, false);
-						if (! p2.equals(out.getPath()) ) {
-							try {
-								if (res instanceof IFolder)
-									out = cfgds[i].createFolderDescription(p2, (ICFolderDescription)out);
-								else
-									out = cfgds[i].createFileDescription(p2, out);
-							} catch (CoreException e) { continue outer; }
-						}
-						if (out != null) {
-							boolean exclude = false;
-							for (int j=0; j<selected.length; j++) {
-								if (cfgds[i].getName().equals(selected[j])) {
-									exclude = true;
-									break;
-								}
-							}
-							out.setExcluded(exclude);
+			while(it2.hasNext()) {
+				IResource res = (IResource)it2.next();
+				IProject p = res.getProject();
+				if (!p.isOpen()) continue;
+				// get writable description
+				ICProjectDescription prjd = CoreModel.getDefault().getProjectDescription(p, true);
+				if (prjd == null) continue;
+				ICConfigurationDescription[] cfgds = prjd.getConfigurations();
+				for (int i=0; i<cfgds.length; i++) {
+					boolean exclude = false;
+					for (int j=0; j<selected.length; j++) {
+						if (cfgds[i].getName().equals(selected[j])) {
+							exclude = true;
+							break;
 						}
 					}
-					try {
-						CoreModel.getDefault().setProjectDescription(p, prjd);
-					} catch (CoreException e) {}
-					AbstractPage.updateViews(res);
+					setExclude(res, cfgds[i], exclude);
 				}
+				try {
+					CoreModel.getDefault().setProjectDescription(p, prjd);
+				} catch (CoreException e) {
+					CUIPlugin.getDefault().logErrorMessage(UIMessages.getString("AbstractPage.11") + e.getLocalizedMessage()); //$NON-NLS-1$
+				}
+				AbstractPage.updateViews(res);
+			}
 		}
 	}