diff --git a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/libraryEditor/AnnotationsOrderRootTypeUIFactory.java b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/libraryEditor/AnnotationsOrderRootTypeUIFactory.java
index 77948135226c..df0f20baf636 100644
--- a/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/libraryEditor/AnnotationsOrderRootTypeUIFactory.java
+++ b/java/idea-ui/src/com/intellij/openapi/roots/ui/configuration/libraryEditor/AnnotationsOrderRootTypeUIFactory.java
@@ -20,7 +20,7 @@
  */
 package com.intellij.openapi.roots.ui.configuration.libraryEditor;
 
-import com.intellij.openapi.fileChooser.FileChooserDescriptorFactory;
+import com.intellij.openapi.fileChooser.FileChooserDescriptor;
 import com.intellij.openapi.project.ProjectBundle;
 import com.intellij.openapi.projectRoots.Sdk;
 import com.intellij.openapi.projectRoots.ui.SdkPathEditor;
@@ -45,6 +45,6 @@ public class AnnotationsOrderRootTypeUIFactory implements OrderRootTypeUIFactory
 
   public SdkPathEditor createPathEditor(Sdk sdk) {
     return new SdkPathEditor(ProjectBundle.message("sdk.configure.annotations.tab"), AnnotationOrderRootType.getInstance(),
-                          FileChooserDescriptorFactory.createSingleFolderDescriptor());
+                             new FileChooserDescriptor(false, true, true, false, true, false));
   }
 }
diff --git a/java/java-impl/src/com/intellij/codeInsight/ExternalAnnotationsManagerImpl.java b/java/java-impl/src/com/intellij/codeInsight/ExternalAnnotationsManagerImpl.java
index fd399909e42f..13e176e36ad9 100644
--- a/java/java-impl/src/com/intellij/codeInsight/ExternalAnnotationsManagerImpl.java
+++ b/java/java-impl/src/com/intellij/codeInsight/ExternalAnnotationsManagerImpl.java
@@ -202,7 +202,9 @@ public class ExternalAnnotationsManagerImpl extends ExternalAnnotationsManager {
     }
     for (final OrderEntry entry : entries) {
       if (entry instanceof ModuleOrderEntry) continue;
-      final VirtualFile[] virtualFiles = AnnotationOrderRootType.getFiles(entry);
+      VirtualFile[] virtualFiles = AnnotationOrderRootType.getFiles(entry);
+      virtualFiles = filterByReadOnliness(virtualFiles);
+
       if (virtualFiles.length > 0) {
         chooseRootAndAnnotateExternally(listOwner, annotationFQName, fromFile, project, packageName, virtualFile, virtualFiles, value);
       }
@@ -255,7 +257,7 @@ public class ExternalAnnotationsManagerImpl extends ExternalAnnotationsManager {
                                                final Project project, final String packageName, final VirtualFile virtualFile,
                                                final VirtualFile[] virtualFiles, final PsiNameValuePair[] value) {
     if (virtualFiles.length > 1) {
-      JBPopupFactory.getInstance().createListPopup(new BaseListPopupStep<VirtualFile>("Annotation Roots", virtualFiles){
+      JBPopupFactory.getInstance().createListPopup(new BaseListPopupStep<VirtualFile>("Annotation Roots", virtualFiles) {
         @Override
         public PopupStep onChosen(final VirtualFile file, final boolean finalChoice) {
           annotateExternally(file, listOwner, project, packageName, virtualFile, annotationFQName, fromFile, value);
@@ -273,11 +275,23 @@ public class ExternalAnnotationsManagerImpl extends ExternalAnnotationsManager {
           return ICON;
         }
       }).showInBestPositionFor(DataManager.getInstance().getDataContext());
-    } else {
+    }
+    else {
       annotateExternally(virtualFiles[0], listOwner, project, packageName, virtualFile, annotationFQName, fromFile, value);
     }
   }
 
+  @NotNull
+  private static VirtualFile[] filterByReadOnliness(@NotNull VirtualFile[] files) {
+    List<VirtualFile> result = new ArrayList<VirtualFile>();
+    for (VirtualFile file : files) {
+      if (file.isInLocalFileSystem()) {
+        result.add(file);
+      }
+    }
+    return VfsUtil.toVirtualFileArray(result);
+  }
+
   private void annotateExternally(final VirtualFile file, final PsiModifierListOwner listOwner, final Project project,
                                   final String packageName,
                                   final VirtualFile virtualFile,
@@ -562,28 +576,28 @@ public class ExternalAnnotationsManagerImpl extends ExternalAnnotationsManager {
       }
       final List<OrderEntry> entries = ProjectRootManager.getInstance(project).getFileIndex().getOrderEntriesForFile(virtualFile);
       for (OrderEntry entry : entries) {
-        if (!(entry instanceof ModuleOrderEntry)) {
-          List<XmlFile> possibleAnnotationsXmls = null;
-          final String[] externalUrls = AnnotationOrderRootType.getUrls(entry);
-          for (String url : externalUrls) {
-            final VirtualFile ext = LocalFileSystem.getInstance()
-              .findFileByPath(VfsUtil.urlToPath(url) + "/" + packageName.replace(".", "/") + "/" + ANNOTATIONS_XML);
-            if (ext != null) {
-              final PsiFile psiFile = myPsiManager.findFile(ext);
-              if (psiFile instanceof XmlFile) {
-                if (possibleAnnotationsXmls == null) {
-                  possibleAnnotationsXmls = new ArrayList<XmlFile>();
-                }
-                possibleAnnotationsXmls.add((XmlFile)psiFile);
-              }
-            }
-          }
-          if (possibleAnnotationsXmls != null) {
-            myExternalAnnotations.put(fqn, possibleAnnotationsXmls);
-            return possibleAnnotationsXmls;
-          }
-          break;
+        if (entry instanceof ModuleOrderEntry) {
+          continue;
         }
+        List<XmlFile> possibleAnnotationsXmls = null;
+        final String[] externalUrls = AnnotationOrderRootType.getUrls(entry);
+        for (String url : externalUrls) {
+          VirtualFile root = VirtualFileManager.getInstance().findFileByUrl(url);
+          if (root == null) continue;
+          final VirtualFile ext = root.findFileByRelativePath(packageName.replace(".", "/") + "/" + ANNOTATIONS_XML);
+          if (ext == null) continue;
+          final PsiFile psiFile = myPsiManager.findFile(ext);
+          if (!(psiFile instanceof XmlFile)) continue;
+          if (possibleAnnotationsXmls == null) {
+            possibleAnnotationsXmls = new ArrayList<XmlFile>();
+          }
+          possibleAnnotationsXmls.add((XmlFile)psiFile);
+        }
+        if (possibleAnnotationsXmls != null) {
+          myExternalAnnotations.put(fqn, possibleAnnotationsXmls);
+          return possibleAnnotationsXmls;
+        }
+        break;
       }
       myExternalAnnotations.put(fqn, NULL);
     }
diff --git a/java/openapi/src/com/intellij/openapi/roots/AnnotationOrderRootType.java b/java/openapi/src/com/intellij/openapi/roots/AnnotationOrderRootType.java
index 6088fc72625f..c94b66320eb4 100644
--- a/java/openapi/src/com/intellij/openapi/roots/AnnotationOrderRootType.java
+++ b/java/openapi/src/com/intellij/openapi/roots/AnnotationOrderRootType.java
@@ -18,6 +18,7 @@ package com.intellij.openapi.roots;
 import com.intellij.openapi.vfs.VfsUtil;
 import com.intellij.openapi.vfs.VirtualFile;
 import com.intellij.util.ArrayUtil;
+import org.jetbrains.annotations.NotNull;
 
 import java.util.ArrayList;
 import java.util.Collections;
@@ -43,7 +44,8 @@ public class AnnotationOrderRootType extends PersistentOrderRootType {
     return true;
   }
 
-  public static VirtualFile[] getFiles(OrderEntry entry) {
+  @NotNull
+  public static VirtualFile[] getFiles(@NotNull OrderEntry entry) {
     List<VirtualFile> result = new ArrayList<VirtualFile>();
     RootPolicy<List<VirtualFile>> policy = new RootPolicy<List<VirtualFile>>() {
       @Override
@@ -69,7 +71,8 @@ public class AnnotationOrderRootType extends PersistentOrderRootType {
     return VfsUtil.toVirtualFileArray(result);
   }
 
-  public static String[] getUrls(OrderEntry entry) {
+  @NotNull
+  public static String[] getUrls(@NotNull OrderEntry entry) {
     List<String> result = new ArrayList<String>();
     RootPolicy<List<String>> policy = new RootPolicy<List<String>>() {
       @Override
diff --git a/platform/lang-api/src/com/intellij/codeInspection/LocalInspectionToolSession.java b/platform/lang-api/src/com/intellij/codeInspection/LocalInspectionToolSession.java
index 3f7635f23262..50ab0b92e180 100644
--- a/platform/lang-api/src/com/intellij/codeInspection/LocalInspectionToolSession.java
+++ b/platform/lang-api/src/com/intellij/codeInspection/LocalInspectionToolSession.java
@@ -22,18 +22,20 @@ package com.intellij.codeInspection;
 
 import com.intellij.openapi.util.UserDataHolderBase;
 import com.intellij.psi.PsiFile;
+import org.jetbrains.annotations.NotNull;
 
 public class LocalInspectionToolSession extends UserDataHolderBase {
   private final PsiFile myFile;
   private final int myStartOffset;
   private final int myEndOffset;
 
-  public LocalInspectionToolSession(final PsiFile file, final int startOffset, final int endOffset) {
+  public LocalInspectionToolSession(@NotNull PsiFile file, final int startOffset, final int endOffset) {
     myFile = file;
     myStartOffset = startOffset;
     myEndOffset = endOffset;
   }
 
+  @NotNull
   public PsiFile getFile() {
     return myFile;
   }
diff --git a/resources-en/src/inspectionDescriptions/MagicConstant.html b/resources-en/src/inspectionDescriptions/MagicConstant.html
index c45a06c7fa6a..fb5dd3775307 100644
--- a/resources-en/src/inspectionDescriptions/MagicConstant.html
+++ b/resources-en/src/inspectionDescriptions/MagicConstant.html
@@ -2,8 +2,9 @@
 <body>
 <font face="verdana" size="-1">Report occurrences where usages of "magic" constants only are allowed
   but other expressions are used instead.<br>
-  E.g. <b><font color="#000080">new </font></b> Font("Arial", <b><font color="#000080">42</font></b>) <br>
-  instead of <b><font color="#000080">new </font></b> Font("Arial", Font.<b><font color="#000080">BOLD</font></b>) <br>
+  E.g.<br>
+  <b><font color="#000080">new </font></b> Font("Arial", <b><font color="#000080">2</font></b>) // not allowed<br>
+  instead of <b><font color="#000080">new </font></b> Font("Arial", Font.<b><font color="#000080">ITALIC</font></b>) // OK<br>
 
   <br><br>