diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/plugin.xml b/build/org.eclipse.cdt.managedbuilder.core.tests/plugin.xml
index d6790ff715a..7d990cc98b3 100644
--- a/build/org.eclipse.cdt.managedbuilder.core.tests/plugin.xml
+++ b/build/org.eclipse.cdt.managedbuilder.core.tests/plugin.xml
@@ -6708,7 +6708,7 @@
       </managedBuildRevision>
       <tool
             natureFilter="cnature"
-            name="%ToolName.linker.gnu.c"
+            name="Test 4.0 ToolName.linker.gnu.c"
             outputFlag="-o"
 		  isSystem="true"
             command="gcc"
@@ -6727,12 +6727,12 @@
          
          <optionCategory
                owner="test.four.dot.zero.cdt.managedbuild.tool.gnu.c.linker"
-               name="%OptionCategory.General"
+               name="Test 4.0 OptionCategory.General"
                id="test.gnu.c.link.category.general">
          </optionCategory>
          <option
                defaultValue="false"
-               name="%Option.Posix.Linker.NoStartFiles"
+               name="Test 4.0 Option.Posix.Linker.NoStartFiles"
                category="test.gnu.c.link.category.general"
                command="-nostartfiles"
                id="test.gnu.c.link.option.nostart"
@@ -6740,7 +6740,7 @@
          </option>
          <option
                defaultValue="false"
-               name="%Option.Posix.Linker.NoDefLibs"
+               name="Test 4.0 Option.Posix.Linker.NoDefLibs"
                category="test.gnu.c.link.category.general"
                command="-nodefaultlibs"
                id="test.gnu.c.link.option.nodeflibs"
@@ -6748,7 +6748,7 @@
          </option>
          <option
                defaultValue="false"
-               name="%Option.Posix.Linker.NoStdLibs"
+               name="Test 4.0 Option.Posix.Linker.NoStdLibs"
                category="test.gnu.c.link.category.general"
                command="-nostdlib"
                id="test.gnu.c.link.option.nostdlibs"
@@ -6756,7 +6756,7 @@
          </option>
          <option
                defaultValue="false"
-               name="%Option.Posix.Linker.Strip"
+               name="Test 4.0 Option.Posix.Linker.Strip"
                category="test.gnu.c.link.category.general"
                command="-s"
                id="test.gnu.c.link.option.strip"
@@ -6764,7 +6764,7 @@
          </option>
          <option
                defaultValue="false"
-               name="%Option.Posix.Linker.Static"
+               name="Test 4.0 Option.Posix.Linker.Static"
                category="test.gnu.c.link.category.general"
                command="-static"
                id="test.gnu.c.link.option.noshared"
@@ -6772,11 +6772,11 @@
          </option>
          <optionCategory
                owner="test.four.dot.zero.cdt.managedbuild.tool.gnu.c.linker"
-               name="%OptionCategory.Libs"
+               name="Test 4.0 OptionCategory.Libs"
                id="test.gnu.c.link.category.libs">
          </optionCategory>
          <option
-               name="%Option.Posix.Libs"
+               name="Test 4.0 Option.Posix.Libs"
                category="test.gnu.c.link.category.libs"
                command="-l"
                id="test.gnu.c.link.option.libs"
@@ -6784,7 +6784,7 @@
                valueType="libs">
          </option>
          <option
-               name="%Option.Posix.Libsearch"
+               name="Test 4.0 Option.Posix.Libsearch"
                category="test.gnu.c.link.category.libs"
                command="-L"
                id="test.gnu.c.link.option.paths"
@@ -6793,17 +6793,17 @@
          </option>
          <optionCategory
                owner="test.four.dot.zero.cdt.managedbuild.tool.gnu.c.linker"
-               name="%OptionCategory.Misc"
+               name="Test 4.0 OptionCategory.Misc"
                id="test.gnu.c.link.category.other">
          </optionCategory>
          <option
-               name="%Option.Posix.Linker.Flags"
+               name="Test 4.0 Option.Posix.Linker.Flags"
                category="test.gnu.c.link.category.other"
                valueType="string"
                id="test.gnu.c.link.option.ldflags">
          </option>
          <option
-               name="%Option.Posix.Linker.XLinker"
+               name="Test 4.0 Option.Posix.Linker.XLinker"
                category="test.gnu.c.link.category.other"
                command="-Xlinker ${VALUE}"
                valueType="stringList"
@@ -8348,7 +8348,7 @@
                      archList="all"
                      osList="win32"
                      name="Test 4.0 ToolChainName.Cygwin"
-                     targetTool="test.four.dot.zero.cdt.managedbuild.tool.gnu.cpp.linker.cygwin.base;cdt.managedbuild.tool.gnu.c.linker.cygwin.base;cdt.managedbuild.tool.gnu.archiver"
+                     targetTool="test.four.dot.zero.cdt.managedbuild.tool.gnu.cpp.linker.cygwin.base;test.four.dot.zero.cdt.managedbuild.tool.gnu.c.linker.cygwin.base;test.four.dot.zero.cdt.managedbuild.tool.gnu.archiver"
                      isSystem="true"
                      id="test.four.dot.zero.cdt.managedbuild.toolchain.gnu.cygwin.base">
                   <targetPlatform
@@ -8809,7 +8809,7 @@
               </toolChain>                                                                                				                    
          </configuration>         
       </projectType>                              
-   	              
+     
    </extension>
    
    
diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/oldTypeProjects/1.2/test12.zip b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/oldTypeProjects/1.2/test12.zip
index 6e6cfd47904..5a2b7608363 100644
Binary files a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/oldTypeProjects/1.2/test12.zip and b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/oldTypeProjects/1.2/test12.zip differ
diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/copyandDeploy/copyandDeploy.zip b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/copyandDeploy/copyandDeploy.zip
index 2959549df37..9b2ff5965e0 100644
Binary files a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/copyandDeploy/copyandDeploy.zip and b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/copyandDeploy/copyandDeploy.zip differ
diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/inputTypeOption/inputTypeOption.zip b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/inputTypeOption/inputTypeOption.zip
index 0c446e90ecb..ee3fc818777 100644
Binary files a/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/inputTypeOption/inputTypeOption.zip and b/build/org.eclipse.cdt.managedbuilder.core.tests/resources/test30Projects/inputTypeOption/inputTypeOption.zip differ
diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/BasicTestCase.java b/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/BasicTestCase.java
new file mode 100644
index 00000000000..81736dfadd2
--- /dev/null
+++ b/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/BasicTestCase.java
@@ -0,0 +1,43 @@
+/*******************************************************************************
+ * Copyright (c) 2007 Intel Corporation and others.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ * Intel Corporation - Initial API and implementation
+ *******************************************************************************/
+package org.eclipse.cdt.managedbuilder.core.tests;
+
+import java.util.Iterator;
+import java.util.LinkedList;
+import java.util.List;
+
+import junit.framework.TestCase;
+
+import org.eclipse.core.resources.IProject;
+import org.eclipse.core.runtime.CoreException;
+
+public class BasicTestCase extends TestCase {
+	private List fProjList = new LinkedList();
+	
+	protected void addProject(IProject project){
+		fProjList.add(project);
+	}
+
+	protected void setUp() throws Exception {
+		super.setUp();
+	}
+
+	protected void tearDown() throws Exception {
+		for(Iterator iter = fProjList.iterator(); iter.hasNext();){
+			IProject proj = (IProject)iter.next();
+			try {
+				proj.delete(true, null);
+			} catch (CoreException e){
+			}
+		}
+		super.tearDown();
+	}
+}
diff --git a/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/ToolChainModificationTests.java b/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/ToolChainModificationTests.java
new file mode 100644
index 00000000000..20457a22b5f
--- /dev/null
+++ b/build/org.eclipse.cdt.managedbuilder.core.tests/tests/org/eclipse/cdt/managedbuilder/core/tests/ToolChainModificationTests.java
@@ -0,0 +1,27 @@
+/*******************************************************************************
+ * Copyright (c) 2007 Intel Corporation and others.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ * Intel Corporation - Initial API and implementation
+ *******************************************************************************/
+package org.eclipse.cdt.managedbuilder.core.tests;
+
+import junit.framework.Test;
+import junit.framework.TestSuite;
+
+public class ToolChainModificationTests extends BasicTestCase {
+	
+	public static Test suite() {
+		TestSuite suite = new TestSuite(ToolChainModificationTests.class);
+		
+		return suite;
+	}
+
+//	public void testChangeToolChain(){
+//		
+//	}
+}
diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/FolderInfo.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/FolderInfo.java
index cf3924d9d09..2d7d047a90d 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/FolderInfo.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/FolderInfo.java
@@ -41,6 +41,7 @@ import org.eclipse.cdt.managedbuilder.core.IManagedConfigElement;
 import org.eclipse.cdt.managedbuilder.core.IManagedProject;
 import org.eclipse.cdt.managedbuilder.core.IModificationStatus;
 import org.eclipse.cdt.managedbuilder.core.IOption;
+import org.eclipse.cdt.managedbuilder.core.IOutputType;
 import org.eclipse.cdt.managedbuilder.core.IResourceInfo;
 import org.eclipse.cdt.managedbuilder.core.ITargetPlatform;
 import org.eclipse.cdt.managedbuilder.core.ITool;
@@ -1095,12 +1096,12 @@ public class FolderInfo extends ResourceInfo implements IFolderInfo {
 			toolChain.addTool((Tool)added[i]);
 		}
 		
-		adjustTargetTools(removed, getTools());
+		adjustTargetTools(removed, added);
 		
 		toolChain.propertiesChanged();
 	}
 	
-	private void adjustTargetTools(ITool removed[], ITool allTools[]){
+	private void adjustTargetTools(ITool removed[], ITool added[]){
 		if(!isRoot())
 			return;
 		
@@ -1110,21 +1111,29 @@ public class FolderInfo extends ResourceInfo implements IFolderInfo {
 		set.addAll(Arrays.asList(ids));
 		
 		for(int i = 0; i < removed.length; i++){
-			ITool target = getTargetTool(removed[i]);
+			Object[] tInfo = getTargetTool(removed[i]);
 			
-			if(target == null)
+			if(tInfo == null)
 				continue;
-			
-			List list = BuildSettingsUtil.calcDependentTools(allTools, target, null);
+
+			ITool target = (ITool)tInfo[0];
+			String tId = (String)tInfo[1];
+
+			List list = BuildSettingsUtil.calcDependentTools(added, target, null);
 			if(list.size() != 0)
 				continue;
 			
-			ITool newTargetTool = findCompatibleTargetTool(target, allTools);
-			if(newTargetTool != null){
-				set.remove(target.getId());
-				set.add(newTargetTool.getId());
-				targetToolsModified = true;
-			}
+			ITool newTargetTool = findCompatibleTargetTool(target, added);
+			if(newTargetTool == null)
+				continue;
+			
+			newTargetTool = ManagedBuildManager.getExtensionTool(newTargetTool);
+			if(newTargetTool == null)
+				continue;
+
+			set.remove(tId);
+			set.add(newTargetTool.getId());
+			targetToolsModified = true;
 		}
 		
 		if(targetToolsModified){
@@ -1149,10 +1158,43 @@ public class FolderInfo extends ResourceInfo implements IFolderInfo {
 				break;
 		}
 		
+		if(compatibleTool == null){
+			//try to match build output variable
+			Set set = getToolOutputVars(tool);
+			for(int i = 0; i < allTools.length; i++){
+				IOutputType types[] = allTools[i].getOutputTypes();
+				for(int k = 0; k < types.length; k++){
+					String var = types[k].getBuildVariable();
+					if(var != null && set.contains(var)){
+						compatibleTool = allTools[i];
+						break;
+					}
+					
+				}
+
+				if(compatibleTool != null)
+					break;
+			}
+		}
+		
 		return compatibleTool;
 	}
 	
-	private ITool getTargetTool(ITool tool){
+	private Set getToolOutputVars(ITool tool){
+		Set set = new HashSet();
+		
+		IOutputType types[] = tool.getOutputTypes();
+		for(int k = 0; k < types.length; k++){
+			String var = types[k].getBuildVariable();
+			if(var != null)
+				set.add(var);
+			
+		}
+		
+		return set;
+	}
+	
+	private Object[] getTargetTool(ITool tool){
 		String [] ids = toolChain.getTargetToolList();
 		
 		for(int i = 0; i < ids.length; i++){
@@ -1163,7 +1205,7 @@ public class FolderInfo extends ResourceInfo implements IFolderInfo {
 					break;
 			}
 			if(target != null)
-				return target;
+				return new Object[]{target, id};
 				
 		}
 		return null;
diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Tool.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Tool.java
index 1edd1c1c93b..eb7aa0100da 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Tool.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/internal/core/Tool.java
@@ -2119,15 +2119,20 @@ public class Tool extends HoldsOptions implements ITool, IOptionCategory, IMatch
 	 * @see org.eclipse.cdt.core.build.managed.ITool#getAnnouncement()
 	 */
 	public String getAnnouncement() {
+		String an = getAnnouncementAttribute();
+		if(an == null){
+			an = ManagedMakeMessages.getResourceString(DEFAULT_ANNOUNCEMENT_PREFIX) +
+						WHITESPACE + getName();  // + "(" + getId() + ")";  
+		}
+		return an;
+	}
+	
+	public String getAnnouncementAttribute() {
 		if (announcement == null) {
 			if (getSuperClass() != null) {
-				return getSuperClass().getAnnouncement();
-			} else {
-				//  Generate the default announcement string for the Tool
-				String defaultAnnouncement = ManagedMakeMessages.getResourceString(DEFAULT_ANNOUNCEMENT_PREFIX) +
-					WHITESPACE + getName();  // + "(" + getId() + ")";  
-				return defaultAnnouncement;
-			}
+				return ((Tool)getSuperClass()).getAnnouncementAttribute();
+			} 
+			return null;
 		}
 		return announcement;
 	}
diff --git a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
index 3cdc3ce79c2..4ab96a7d177 100644
--- a/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
+++ b/build/org.eclipse.cdt.managedbuilder.core/src/org/eclipse/cdt/managedbuilder/makegen/gnu/GnuMakefileGenerator.java
@@ -2046,9 +2046,23 @@ public class GnuMakefileGenerator implements IManagedBuilderMakefileGenerator2 {
 					addToBuildVar(buildVarToRuleStringMap, ext, varName, relativePath, sourceLocation, generatedSource);
 			}
 		}
+
 		ToolInfoHolder h = getToolInfo(rcInfo.getPath());
 		ITool buildTools[] = h.buildTools;
 		
+//		if(tool == null){
+//			for (int j=0; j<buildTools.length; j++) {
+//				if (buildTools[j].buildsFileType(ext)) {
+//					if (tool == null) {
+//						tool = buildTools[j];
+//					}
+//					addToBuildVar(buildVarToRuleStringMap, ext, varName, relativePath, sourceLocation, generatedSource);
+//					break;
+//				}
+//			}
+//		}
+//		
+//		if(tool == null && rcInfo.getPath().segmentCount() != 0){
 		if(tool == null){
 			h = getToolInfo(Path.EMPTY);
 			buildTools = h.buildTools;