As the shlingel said, eclipse cannot process a nested project. Typically, nested projects are subprojects or modules of a larger project, and they often inherit settings, while the base project can manage nested projects.
Using Maven and the m2eclipse plugin, you can get support for nested projects. A file system view would be nested, however eclipse cannot display it as such. In eclipse, they would look like parallel projects, but the m2eclipse plugin has some support, at least to provide some of the functionality embedded in it.
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