Eclipse Galileo does not deploy external jars into WEB-INF/lib directory

I created new web project testweb.

By default default output folder is testweb\build\classes.

Added some jars to build path.

Then selected these jars in "Java EE Module Dependencies" in order to Eclipse put this jars into WEB-INF/lib during deploying on some server.

Then I deployed this web application from Eclipse on server(JBoss).

All is ok - there are jars in WEB-INF/lib directory.

But if I change default output folder from testweb\build\classes to testweb\web\WEB-INF\classes Eclipse stops to deploy external jars to WEB-INF/lib directory.

This directory is empty! Why? What is wrong?

Looks like bug 266268 , also described in this thread.
Notes:

• this was for eclipse3.4, do you still have this issue with the latest eclipse3.5.1 (since "Galileo" could be just 3.5)?
• there is a debug procedure.

Thanks to Larry and his hints for debugging I found the source cause of this:
don't use WEB-INF/classes as the default output folder. There is a bug (probably), that makes eclipse to calculate project contents differently in this case.

So the workaround solution is to change the default output folder.

The bug is a duplicate of bug 249044, reported fixed in WTP3.0.5: what version of WTP do you have with your Galileo eclipse?