### Eclipse Workspace Patch 1.0
#P org.jboss.tools.ws.ui
Index: src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizard.java
===================================================================
--- src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizard.java	(revision 24632)
+++ src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizard.java	(working copy)
@@ -87,8 +87,14 @@
 			model.setUpdateWebxml(true);
 			model.setCustomPackage(getPackageName());
 
-			File file = JBossWSCreationUtils.findFileByPath(getClassName() + JAVA, project
-					.getLocation().toOSString());
+			String classFilePath = 
+				JBossWSCreationUtils.composeSrcPackageClassPath(project, model.getCustomPackage(), className);
+			File file = null;
+			if (classFilePath != null) 
+				file = JBossWSCreationUtils.findFileByPath(classFilePath);
+			else 
+				file = JBossWSCreationUtils.findFileByPath(className + JAVA,
+					project.getLocation().toOSString());
 			if (file != null) {
 				MessageDialog
 						.openError(
Index: src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizardValidator.java
===================================================================
--- src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizardValidator.java	(revision 24578)
+++ src/org/jboss/tools/ws/ui/wizards/JBossWSGenerateWizardValidator.java	(working copy)
@@ -160,7 +160,13 @@
 			if (status != null && status.getSeverity() == IStatus.ERROR) {
 				return status;
 			}
-			File file = JBossWSCreationUtils.findFileByPath(className + JAVA,
+			String classFilePath = 
+				JBossWSCreationUtils.composeSrcPackageClassPath(project, model.getCustomPackage(), className);
+			File file = null;
+			if (classFilePath != null) 
+				file = JBossWSCreationUtils.findFileByPath(classFilePath);
+			else 
+				file = JBossWSCreationUtils.findFileByPath(className + JAVA,
 					project.getLocation().toOSString());
 			if (file != null) {
 				// class already exists
#P org.jboss.tools.ws.creation.core
Index: src/org/jboss/tools/ws/creation/core/utils/JBossWSCreationUtils.java
===================================================================
--- src/org/jboss/tools/ws/creation/core/utils/JBossWSCreationUtils.java	(revision 24277)
+++ src/org/jboss/tools/ws/creation/core/utils/JBossWSCreationUtils.java	(working copy)
@@ -75,6 +75,7 @@
 			"synchronized", "this", "throw", "throws", "transient", "true", //$NON-NLS-1$ //$NON-NLS-2$ //$NON-NLS-3$ //$NON-NLS-4$ //$NON-NLS-5$ //$NON-NLS-6$
 			"try", "void", "volatile", "while" }; //$NON-NLS-1$ //$NON-NLS-2$ //$NON-NLS-3$ //$NON-NLS-4$
 	static final String WEBINF = "WEB-INF"; //$NON-NLS-1$
+	private static String JAVA = ".java"; //$NON-NLS-1$
 
 	public static boolean isJavaKeyword(String keyword) {
 		if (hasUpperCase(keyword)) {
@@ -445,6 +446,30 @@
 		return path;
 	}
 
+	public static String composeSrcPackageClassPath ( IProject project, String packageName, String className) {
+		String classFilePath = null;
+		try {
+			String srcPath = JBossWSCreationUtils.getJavaProjectSrcLocation(project);
+			if (srcPath != null && srcPath.trim().length() > 0) {
+				String pathSeparator = "" + File.separatorChar; //$NON-NLS-1$
+				String packageToFolderPath = packageName.replace(".", pathSeparator); //$NON-NLS-1$
+				classFilePath = srcPath + pathSeparator + packageToFolderPath + pathSeparator + className + JAVA;
+				return classFilePath;
+			}
+		} catch (JavaModelException e) {
+			return null;
+		}
+		return null;
+	
+	}
+	
+	public static File findFileByPath(String path) {
+		File file = new File(path);
+		if (file.exists())
+			return file;
+		return null;
+	}
+
 	public static File findFileByPath(String name, String path) {
 		File ret = null;
 		File folder = new File(path);