diff --git a/VERSION.txt b/VERSION.txt
index 2ca7ba149a7..0b0f2e2b2ea 100644
--- a/VERSION.txt
+++ b/VERSION.txt
@@ -2,6 +2,7 @@ jetty-7.0.2-SNAPSHOT
  + JSON parses NaN as null
  + 290765 Reset input for HttpExchange retry.
  + 292799 WebAppDeployer - start a started context?
+ + 292800 ContextDeployer - recursive setting is undone by FilenameFilter
  + 294799 when configuring a webapp, don't look for WEB-INF/jetty6-web.xml
  + 296569 removeLifeCycleListener() has no effect
  + 296765 JMX Connector Server and ShutdownThread
diff --git a/jetty-deploy/src/main/java/org/eclipse/jetty/deploy/ContextDeployer.java b/jetty-deploy/src/main/java/org/eclipse/jetty/deploy/ContextDeployer.java
index e7cca184343..116e009728e 100644
--- a/jetty-deploy/src/main/java/org/eclipse/jetty/deploy/ContextDeployer.java
+++ b/jetty-deploy/src/main/java/org/eclipse/jetty/deploy/ContextDeployer.java
@@ -393,11 +393,11 @@ public class ContextDeployer extends AbstractLifeCycle
             {
                 try
                 {
-                    if (name.endsWith(".xml")&&dir.equals(getConfigurationDir().getFile()))
+                    if (name.endsWith(".xml"))
                         return true;
                     return false;
                 }
-                catch (IOException e)
+                catch (Exception e)
                 {
                     Log.warn(e);
                     return false;