.project and .classpath should be inside VC
From the Eclipse Documentation: "Make sure that the .project and .classpath files are under version control. These files must be stored in the repository so that other users checking out the projects for the first time will get the correct type of project and will get the correct Java build path." - http://wiki.eclipse.org/FAQ_How_do_I_set_up_a_Java_project_to_share_in_a_repository%3F
Rafael Miranda