Serve Modules without publishing not working in He

I have recently moved a webapp I have been developing to a new machine running 64bit Eclipse Helios (Service Release 2) and I am using Maven plugin M2Eclipse.

I have deployed on a local tomcat install through Eclipse and everything is ok (more or less), but I want to select the option "Serve Modules without publishing", but when I select this option I get errors:

log4j:ERROR Could not read configuration file from URL [file:/C:/butterfly/svn/trunk/micro/src/main/webapp/WEB-INF/classes/log4j.properties].
java.io.FileNotFoundException: C:\butterfly\svn\trunk\micro\src\main\webapp\WEB-INF\classes\log4j.properties (The system cannot find the file specified)

The log4j.properties file is not there, as in my source directories in lives in src/main/resources - at build it then gets copied over to target/WEB-INF/classes/..

Eclipse seems to be mixing the expected target directory with the src directory so not finding it.

Im not sure if this is happening for just the properties file or if the same problem will occur looking for all built resources.

I have seen these issues:

https://bugs.eclipse.org/bugs/show_bug.cgi?id=318449

http://www.eclipse.org/forums/index.php?t=msg&goto=661045&S=25bafd85b11e042c169ecf1752bfa479

but they seem to be slightly different or already fixed (My Helios is a new download from last weekend)

Anyone experience this or know how to resolve?

From here: "The Serve modules without publishing option does what it says. Web content will be served directly from the "WebContent" folder of the Dynamic Web Project. A customized context is used to make the project's dependencies available in the Web application's classloader". I would expect eclipse to emulate serving every class / resource file (including log4j.properties) from WEB-INF/classes after you build the project. As a workaround, what about creating a "classes" folder inside WebContent, copy log4j.properties file here and see if the classloader gets happy?