I am trying to create a new project from existing source code. I keep getting the following error: \"Invalid Project Description\", project path \"overlaps the location of a
Today I accidentally solved the issue:
Press finish.
[Optional scenario]: If project(s) and their containing folders have been renamed with the fully qualified package names then simply click on project node parent (where you see project package name instead of project's old name) in Eclipse and rename project with old name. Eclipse will rename folder too.
P.S. Tested on Eclipse Juno.
Edit: Many times have passed since this answer and new Eclipse and Android SDK arrived. They have no much more problems during importing existing projects. The only thing one has to consider before importing is to move project folders(those ones one is willing to import) outside of eclipse workspace dir and then check checkboxes ("copy projects into working sets", "add projects into wokring sets") in import wizard dialog. Also I recommend doing this with latest Android SDK because it no more imports projects with dummy names and does not rename folders as it did in some custom cases.