Output path error when adding new Flex_as module to project-workspace?

Hi
Can someone help me resolve the following error?
And yes, 'Inherit project compile output path' is NOT selected!

//ERROR MSG START
"Module 'foo' output path is incompatible with eclipse format which supports output under content root only.
Please make sure that "Inherit project compile output path" is not selected"
//ERROR MSG END

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You have probably imported Flash Builder project as Eclipse project. You should have selected File | New Project | Import project from external model | Flash/Flex Builder instead.

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