diff --git a/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactAntGenerationContextImpl.java b/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactAntGenerationContextImpl.java
index 42d09995d41c..d4b60924c2c2 100644
--- a/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactAntGenerationContextImpl.java
+++ b/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactAntGenerationContextImpl.java
@@ -7,12 +7,11 @@ import com.intellij.compiler.ant.Generator;
 import com.intellij.compiler.ant.taskdefs.Mkdir;
 import com.intellij.compiler.ant.taskdefs.Property;
 import com.intellij.openapi.project.Project;
-import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.openapi.vfs.VfsUtil;
 import com.intellij.packaging.artifacts.Artifact;
 import com.intellij.packaging.artifacts.ArtifactManager;
 import com.intellij.packaging.elements.ArtifactAntGenerationContext;
-import com.intellij.packaging.elements.ArtifactRootElement;
+import com.intellij.packaging.impl.artifacts.ArtifactUtil;
 import gnu.trove.THashMap;
 import gnu.trove.THashSet;
 import org.jetbrains.annotations.NonNls;
@@ -40,8 +39,7 @@ public class ArtifactAntGenerationContextImpl implements ArtifactAntGenerationCo
     myProject = project;
     myGenerationOptions = generationOptions;
     for (Artifact artifact : ArtifactManager.getInstance(project).getArtifacts()) {
-      final String outputPath = artifact.getOutputPath();
-      if (!StringUtil.isEmpty(outputPath) && artifact.getRootElement() instanceof ArtifactRootElement<?>) {
+      if (ArtifactUtil.shouldClearArtifactOutputBeforeRebuild(artifact)) {
         myArtifactsToClean.add(artifact);
       }
     }
diff --git a/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactsGenerator.java b/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactsGenerator.java
index ed75a4d87f02..0ab7972bf2e0 100644
--- a/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactsGenerator.java
+++ b/java/compiler/impl/src/com/intellij/compiler/ant/artifacts/ArtifactsGenerator.java
@@ -1,22 +1,25 @@
 package com.intellij.compiler.ant.artifacts;
 
 import com.intellij.compiler.ant.BuildProperties;
+import com.intellij.compiler.ant.Comment;
 import com.intellij.compiler.ant.GenerationOptions;
 import com.intellij.compiler.ant.Generator;
-import com.intellij.compiler.ant.Comment;
 import com.intellij.compiler.ant.taskdefs.*;
 import com.intellij.openapi.module.Module;
 import com.intellij.openapi.project.Project;
-import com.intellij.packaging.impl.artifacts.ArtifactUtil;
 import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.packaging.artifacts.Artifact;
 import com.intellij.packaging.artifacts.ArtifactManager;
+import com.intellij.packaging.elements.ComplexPackagingElement;
+import com.intellij.packaging.elements.CompositePackagingElement;
 import com.intellij.packaging.elements.PackagingElement;
 import com.intellij.packaging.elements.PackagingElementResolvingContext;
+import com.intellij.packaging.impl.artifacts.ArtifactUtil;
+import com.intellij.packaging.impl.artifacts.PackagingElementProcessor;
 import com.intellij.packaging.impl.elements.ArtifactPackagingElement;
 import com.intellij.packaging.impl.elements.ModuleOutputPackagingElement;
-import com.intellij.util.Processor;
 import org.jetbrains.annotations.NonNls;
+import org.jetbrains.annotations.NotNull;
 
 import java.util.ArrayList;
 import java.util.List;
@@ -96,9 +99,14 @@ public class ArtifactsGenerator {
   private Target createArtifactTarget(Artifact artifact) {
     final StringBuilder depends = new StringBuilder(INIT_ARTIFACTS_TARGET);
 
-    //todo[nik] do not process content of included artifacts
-    ArtifactUtil.processPackagingElements(artifact, null, new Processor<PackagingElement<?>>() {
-      public boolean process(PackagingElement<?> packagingElement) {
+    ArtifactUtil.processPackagingElements(artifact, null, new PackagingElementProcessor<PackagingElement<?>>() {
+      @Override
+      public boolean shouldProcessSubstitution(ComplexPackagingElement<?> element) {
+        return !(element instanceof ArtifactPackagingElement);
+      }
+
+      @Override
+      public boolean process(@NotNull List<CompositePackagingElement<?>> parents, @NotNull PackagingElement<?> packagingElement) {
         if (packagingElement instanceof ArtifactPackagingElement) {
           final Artifact included = ((ArtifactPackagingElement)packagingElement).findArtifact(myResolvingContext);
           if (included != null) {
diff --git a/java/compiler/impl/src/com/intellij/packaging/impl/artifacts/ArtifactUtil.java b/java/compiler/impl/src/com/intellij/packaging/impl/artifacts/ArtifactUtil.java
index d12aa6269431..ebe959ee1606 100644
--- a/java/compiler/impl/src/com/intellij/packaging/impl/artifacts/ArtifactUtil.java
+++ b/java/compiler/impl/src/com/intellij/packaging/impl/artifacts/ArtifactUtil.java
@@ -475,4 +475,9 @@ public class ArtifactUtil {
 
     element.removeChildren(toRemove);
   }
+
+  public static boolean shouldClearArtifactOutputBeforeRebuild(Artifact artifact) {
+    final String outputPath = artifact.getOutputPath();
+    return !StringUtil.isEmpty(outputPath) && artifact.getRootElement() instanceof ArtifactRootElement<?>;
+  }
 }
diff --git a/platform/lang-impl/src/com/intellij/conversion/ModuleSettings.java b/platform/lang-impl/src/com/intellij/conversion/ModuleSettings.java
index 8b30ea156789..be8ed687bf70 100644
--- a/platform/lang-impl/src/com/intellij/conversion/ModuleSettings.java
+++ b/platform/lang-impl/src/com/intellij/conversion/ModuleSettings.java
@@ -25,6 +25,9 @@ public interface ModuleSettings extends ComponentManagerSettings {
   @NotNull
   Collection<? extends Element> getFacetElements(@NotNull String facetTypeId);
 
+  @Nullable
+  Element getFacetElement(@NotNull String facetTypeId);
+
   void setModuleType(@NotNull String moduleType);
 
   @NotNull
diff --git a/platform/lang-impl/src/com/intellij/conversion/impl/ModuleSettingsImpl.java b/platform/lang-impl/src/com/intellij/conversion/impl/ModuleSettingsImpl.java
index 2bb255a5c2b7..5f238066527b 100644
--- a/platform/lang-impl/src/com/intellij/conversion/impl/ModuleSettingsImpl.java
+++ b/platform/lang-impl/src/com/intellij/conversion/impl/ModuleSettingsImpl.java
@@ -13,6 +13,7 @@ import com.intellij.openapi.roots.impl.libraries.LibraryImpl;
 import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.openapi.vfs.VfsUtil;
+import com.intellij.util.containers.ContainerUtil;
 import org.jdom.Element;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
@@ -64,6 +65,10 @@ public class ModuleSettingsImpl extends ComponentManagerSettingsImpl implements
     return elements;
   }
 
+  public Element getFacetElement(@NotNull String facetTypeId) {
+    return ContainerUtil.getFirstItem(getFacetElements(facetTypeId), null);
+  }
+
   public void setModuleType(@NotNull String moduleType) {
     getRootElement().setAttribute(ModuleImpl.ELEMENT_TYPE, moduleType);
   }
diff --git a/platform/lang-impl/src/com/intellij/ide/impl/convert/JDomConvertingUtil.java b/platform/lang-impl/src/com/intellij/ide/impl/convert/JDomConvertingUtil.java
index 1d8420986889..ff3c9535285a 100644
--- a/platform/lang-impl/src/com/intellij/ide/impl/convert/JDomConvertingUtil.java
+++ b/platform/lang-impl/src/com/intellij/ide/impl/convert/JDomConvertingUtil.java
@@ -49,7 +49,17 @@ public class JDomConvertingUtil {
   public static String getOptionValue(Element element, String optionName) {
     return JDOMExternalizerUtil.readField(element, optionName);
   }
-                                                               
+
+  @Nullable
+  public static Element getSettingsElement(@Nullable Element element, String name) {
+    for (Element child : getChildren(element, "setting")) {
+      if (child.getAttributeValue("name").equals(name)) {
+        return child;
+      }
+    }
+    return null;
+  }
+
   public static Condition<Element> createAttributeValueFilter(@NonNls final String name, @NonNls final String value) {
     return createAttributeValueFilter(name, Collections.singleton(value));
   }