Roo project wizard: "Use external location" not working

In the "Spring Roo Project" wizard, the option for "Use external location" does not work as expected for me.

• My workspace location is C:/Apps/springsource/sts-3.0.0.RELEASE/workspace
• Click on "Spring Roo Project" in the STS dashboard's "Create" section
• Project name = foo, package = com.foo
• Use external location = C:/temp

Expected:
Wizard creates new project in C:/temp/foo with help of Roo project command, imports that project into the Eclipse workspace.

Actual:
It seems like Roo generates into this external location, but then Eclipse creates the actual project in a workspace folder.

Two folders are created, C:/temp/foo and C:/Apps/springsource/sts-3.0.0.RELEASE/workspace/foo.
C:/temp/foo contains

• src folder
• log.roo
• pom.xml
• .classpath
  C:/Apps/springsource/sts-3.0.0.RELEASE/workspace/foo contains
• bin folder
• .settings folder
• .project