You do not need to add dependent projects to Project links (at least when using the m2eclipse-plugin module), just add them as dependencies on your host's pom.xml. I didn't need to touch the build path since I started using Maven in Eclipse.
Make sure that you enable workspace permission for the plugin by right-clicking on the project root → Maven → Allow workspace permission. If he says "Disable workspace permission", he is already on. You may also need to run “Update Project Configuration” in the same menu.
Thus, when you start your master project from Eclipse, any changes made to other projects will be “visible” to the wizard (and you can use hot swap at runtime even in other projects).
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