Zend Studio/Eclipse shows expanded folder names

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I created a project from and existing code base but now in the PHP explorer i see folders will the full path in them.

for example:

1st folder core

2nd subfolder core/config

i want it to read as follows:

1st folder core

2nd subfolder config

Take note it's an SVN project.

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Take a look in the upper right corner of your explorer view. You should see a downward facing triangle. Click it to activate view settings menu. Go to Package Presentation -> Hierarchical.