diff --git a/plugins/org.eclipse.wst.common.modulecore/modulecore-src/org/eclipse/wst/common/componentcore/internal/resources/VirtualFolder.java b/plugins/org.eclipse.wst.common.modulecore/modulecore-src/org/eclipse/wst/common/componentcore/internal/resources/VirtualFolder.java
index 7bb0487..a3a1617 100644
--- a/plugins/org.eclipse.wst.common.modulecore/modulecore-src/org/eclipse/wst/common/componentcore/internal/resources/VirtualFolder.java
+++ b/plugins/org.eclipse.wst.common.modulecore/modulecore-src/org/eclipse/wst/common/componentcore/internal/resources/VirtualFolder.java
@@ -154,11 +154,12 @@
 			if (aProjectRelativeLocation.isUNC()){
 				aProjectRelativeLocation = aProjectRelativeLocation.makeUNC(false);
 			}
+			IPath absolutePath = aProjectRelativeLocation.makeAbsolute();
 			moduleCore = StructureEdit.getStructureEditForWrite(getProject());
 			WorkbenchComponent aComponent = moduleCore.getComponent();
 			ComponentResource[] resources = aComponent.findResourcesByRuntimePath(getRuntimePath());
 			for (ComponentResource resource:resources){
-				if (resource.getSourcePath().equals(aProjectRelativeLocation)){
+				if (resource.getSourcePath().equals(absolutePath)){
 					resource.setTag(tag);
 					return true;
 				}