I had this problem today, and the problem was that the βsrcβ folder was incorrect on the Source tab of the Configure Build Path window. He was there, but the path was wrong, so he had a red X. Deleting this entry and re-adding the path "src" (from the project) made the folder "src" return to the package hierarchy.
In my case, this was due to the sharing of the workspace between user accounts, the paths to the workspace and the folder below were not the same. One user accessed workspaces locally, another accessed a mapped drive, etc.
By fixing this and then standardizing the path to being identical for everyone with access, I solved the underlying problem that caused this problem.
Thomas Carlisle
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