I've just tested it and it works fine with sub-projects. It also looks better than sublcipse IMHO, and has a better handling of renamed/moved files (specific icon) that subclipse handles as removed+added.
In the meantime, it might be worth giving Subversive a try ( http://www.polarion.org/index.php?page=overview&project=subversive ). It's an open source subversion plugin for eclipse, just like subclipse.

Cheers,
-Ralph.


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