--- a/builder/com.nokia.carbide.cdt.builder/src/com/nokia/carbide/cdt/internal/builder/EnvironmentVarsInfo2.java	Fri Mar 27 10:48:47 2009 -0500
+++ b/builder/com.nokia.carbide.cdt.builder/src/com/nokia/carbide/cdt/internal/builder/EnvironmentVarsInfo2.java	Wed Apr 01 13:50:55 2009 -0500
@@ -300,7 +300,10 @@
 		if (System.getenv(EPOCROOT) == null) {
 			String epocRootStr = epocRoot.toOSString();
 			if (epocRootStr.indexOf(":") == 1) {
-				epocRootStr = epocRootStr.substring(2);
+				// only strip the drive for SBSv1
+				if (!CarbideBuilderPlugin.getBuildManager().isCarbideSBSv2Project(projectTracker.getProject())) {
+					epocRootStr = epocRootStr.substring(2);
+				}
 			}
 			
 			returnEnvArray = addToArray(returnEnvArray, EPOCROOT + EQUALS + epocRootStr);