Unable to create Grails project in IDEA 7.0 build#7361

First of all sorry because duplicate post :-p I posted this on general forum first since I did not know that JetGroovy has its own forum. This is my original post:

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Hi all,
I tried creating a grails application in IDEA v. 7.0 but it fails each time telling that "Failed to create grails application withing this project" in an external error message box but shows no exception at grails console within IDEA.
I've configured grails and groovy homes accordingly and they work well. My grails version is 0.4.2 and groovy version is 1.0.
I am following the steps in: http://docs.codehaus.org/display/GRAILS/IDEA+Integration

Also should note that I installed JetGroovy plugin manually and put it in plugins folder of IDEA. It seems that it work but whenever I visit the Settings | Plugins perspective there is a yellog flag beside it. Since I am new to IDEA plugins I am not sure what does it mean.

I will be very grateful if you could point me the potential fix of this problem.
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UPDATE: I installed grails version 1.0-RC1 and got the same problem so it seems the problem is not about grails version.