I've hit this issue as well.  I don't know why it happens, but in
addition to the first suggestion, I do the following so I can keep
everything neatly in my Workspace folder

1) Copy the code you want somewhere else
ie.  copy android-source/apps/whatever home-dir/whatever

2) Create a new project using existing code

3) Once the project is created, right click on it and Refactor > Move
it into the Workspace folder.

Maybe someone more familiar with Eclipse/Android SDK can tell us why
it's like this, whether it's desired behaviour or not, but this seems
to be the best workaround I've found so far.

Hope it helps.

Stephen

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