diff --git a/VERSION.txt b/VERSION.txt
index 60548c2083c..a88dbf5d500 100644
--- a/VERSION.txt
+++ b/VERSION.txt
@@ -36,6 +36,7 @@ jetty-7.2-SNAPSHOT
  + 325128 websocket send during onConnect
  + 325468 Clean work webapp dir before unpack
  + JETTY-912 added per exchange timeout api
+ + JETTY-1063 Plugin problems with spaces in classpath resource references
  + JETTY-1245 Do not use direct buffers with NIO SSL
  + JETTY-1249 Apply max idle time to all connectors
  + JETTY-1250 Parallel start of HandlerCollection
diff --git a/jetty-webapp/src/main/java/org/eclipse/jetty/webapp/WebInfConfiguration.java b/jetty-webapp/src/main/java/org/eclipse/jetty/webapp/WebInfConfiguration.java
index 1775b84d0a0..485dc12b290 100644
--- a/jetty-webapp/src/main/java/org/eclipse/jetty/webapp/WebInfConfiguration.java
+++ b/jetty-webapp/src/main/java/org/eclipse/jetty/webapp/WebInfConfiguration.java
@@ -3,6 +3,7 @@ package org.eclipse.jetty.webapp;
 import java.io.File;
 import java.io.IOException;
 import java.net.URI;
+import java.net.URISyntaxException;
 import java.net.URL;
 import java.net.URLClassLoader;
 import java.util.ArrayList;
@@ -74,7 +75,15 @@ public class WebInfConfiguration extends AbstractConfiguration
                 int i=0;
                 for (URL u : urls)
                 {
-                    containerUris[i++] = u.toURI();
+                    try 
+                    {
+                        containerUris[i] = u.toURI();
+                    }
+                    catch (URISyntaxException e)
+                    {
+                        containerUris[i] = new URI(u.toString().replaceAll(" ", "%20"));
+                    }  
+                    i++;
                 }
                 containerJarNameMatcher.match(containerPattern, containerUris, false);
             }