Oten I find it’s necessary to create a packaged deployment that includes the contents of a referenced project without jar’ing it up and placing it the WEB-INF/lib.
For example, I have a “shared” project that contains my service and DAO layers. I also use the Spring Framework, so my configuration files are contained within the “shared” project that is referenced by my packaged Web app. Spring likes to reference configuration files using “web context relative” paths like “/WEB-INF/classes/spring-config.xml” Since that file is placed by MyEclipse into a jar file in /lib, Spring can’t find it.
Granted, there’s the possiblity that files from the web app, and the referenced project could collide. But I bet you folks can get around that!