diff --git a/GUI/coregui/mainwindow/mainwindow.cpp b/GUI/coregui/mainwindow/mainwindow.cpp
index d9bf9f635e99c321abb0ab54bb35c88fa24d7e66..4e2e905c142ccdc85bbcc253f50dbc0bc7a619ef 100644
--- a/GUI/coregui/mainwindow/mainwindow.cpp
+++ b/GUI/coregui/mainwindow/mainwindow.cpp
@@ -93,11 +93,6 @@ void MainWindow::newProject()
 
 void MainWindow::openProject()
 {
-    QString fileName = QFileDialog::getOpenFileName(this);
-//    std::cout << "XXX openProject() "    << std::endl;
-//    QString directory = QFileDialog::getExistingDirectory(this,
-//                                "AAA",
-//                               "/home/pospelov",);
 
 }
 
diff --git a/GUI/coregui/mainwindow/newprojectdialog.cpp b/GUI/coregui/mainwindow/newprojectdialog.cpp
index e2e7f77eb420da4ff0cab044f90567456c9d779c..e1a7e0186983b94713600ac5bd22dc79fc9e2b72 100644
--- a/GUI/coregui/mainwindow/newprojectdialog.cpp
+++ b/GUI/coregui/mainwindow/newprojectdialog.cpp
@@ -14,37 +14,49 @@
 
 NewProjectDialog::NewProjectDialog(QWidget *parent)
     : QDialog(parent)
+//    , m_nameLabel(0)
+    , m_projectNameEdit(0)
+//    , m_parentDirLabel(0)
+    , m_parentDirEdit(0)
+    , m_browseButton(0)
+    , m_warningLabel(0)
+    , m_cancelButton(0)
+    , m_createButton(0)
+    , m_valid_projectName(true)
+    , m_valid_parentDir(true)
+
 {
     setMinimumSize(480, 280);
     setWindowTitle("New project");
 
+    QLabel *nameLabel = new QLabel(tr("Project name:"));
+    m_projectNameEdit = new QLineEdit;
+    m_projectNameEdit->setText("Untitled");
+    connect(m_projectNameEdit, SIGNAL(textEdited(QString)), this, SLOT(checkIfProjectNameIsValid(QString)));
+    nameLabel->setBuddy(m_projectNameEdit);
 
-
-    m_nameLabel = new QLabel(tr("Project name:"));
-    m_nameEdit = new QLineEdit;
-    m_nameLabel->setBuddy(m_nameEdit);
-
-    m_createinLabel = new QLabel(tr("Create in:"));
-    m_createinEdit = new QLineEdit;
-    m_createinEdit->setText(QDir::homePath());
-    m_createinLabel->setBuddy(m_createinEdit);
+    QLabel *parentDirLabel = new QLabel(tr("Create in:"));
+    m_parentDirEdit = new QLineEdit;
+    m_parentDirEdit->setText(QDir::homePath());
+    connect(m_parentDirEdit, SIGNAL(textEdited(QString)), this, SLOT(checkIfParentDirIsValid(QString)));
+    parentDirLabel->setBuddy(m_parentDirEdit);
 
     m_browseButton = new QPushButton(tr("Browse"));
     connect(m_browseButton, SIGNAL(clicked()), this, SLOT(setDirectory()));
 
+    m_warningLabel = new QLabel();
+
     m_createButton = new QPushButton(tr("Create"));
     m_cancelButton = new QPushButton(tr("Cancel"));
-
-//    m_statusBar = new QStatusBar;
-
+    connect(m_cancelButton, SIGNAL(clicked()), this, SLOT(close()));
 
     QGroupBox *projectGroup = new QGroupBox(tr("Project name and location"));
 
     QGridLayout *layout = new QGridLayout;
-    layout->addWidget(m_nameLabel, 0, 0);
-    layout->addWidget(m_nameEdit, 0, 1);
-    layout->addWidget(m_createinLabel, 1, 0);
-    layout->addWidget(m_createinEdit, 1, 1);
+    layout->addWidget(nameLabel, 0, 0);
+    layout->addWidget(m_projectNameEdit, 0, 1);
+    layout->addWidget(parentDirLabel, 1, 0);
+    layout->addWidget(m_parentDirEdit, 1, 1);
     layout->addWidget(m_browseButton,1,2);
 
     projectGroup->setLayout(layout);
@@ -53,46 +65,97 @@ NewProjectDialog::NewProjectDialog(QWidget *parent)
     buttonsLayout->addStretch(1);
     buttonsLayout->addWidget(m_createButton);
     buttonsLayout->addWidget(m_cancelButton);
-//    buttonsLayout->setMargin(0);
-//    buttonsLayout->setSpacing(0);
-//    layout->addLayout(buttonsLayout);
-
 
     QVBoxLayout *mainLayout = new QVBoxLayout;
     mainLayout->addWidget(projectGroup);
+    mainLayout->addWidget(m_warningLabel);
     mainLayout->addStretch();
     mainLayout->addLayout(buttonsLayout);
-//    mainLayout->addWidget(m_statusBar);
 
     setLayout(mainLayout);
+}
+
 
+void NewProjectDialog::setDirectory()
+{
+    QString dirname = QFileDialog::getExistingDirectory(this,
+                                "AAA",
+                               "/home/pospelov",
+                                QFileDialog::DontResolveSymlinks | QFileDialog::ShowDirsOnly);
 
+    if (!dirname.isEmpty()) {
+        checkIfParentDirIsValid(dirname);
+    }
 
 }
 
 
-void NewProjectDialog::setDirectory()
+void NewProjectDialog::checkIfParentDirIsValid(const QString &dirname)
 {
+    if(QFile::exists(dirname)) {
+        setValidParentDir(true);
+        m_parentDirEdit->setText(dirname);
+    } else {
+        setValidParentDir(false);
+    }
+    updateWarningStatus();
 
-//    QFileDialog::Options options = QFileDialog::DontResolveSymlinks | QFileDialog::ShowDirsOnly;
+}
 
 
-    std::cout << "XXX " << m_createinEdit->text().toStdString() << std::endl;
 
-    QString directory = QFileDialog::getExistingDirectory(this,
-                                "AAA",
-                               "/home/pospelov",
-                                QFileDialog::DontResolveSymlinks | QFileDialog::ShowDirsOnly);
+void NewProjectDialog::checkIfProjectNameIsValid(const QString &projectName)
+{
 
-    std::cout << "XXX 2.1" << m_createinEdit->text().toStdString();
+    QDir projectDir = getParentDirName() + "/" + projectName;
+    if(projectDir.exists()) {
+        setValidProjectName(false);
+    } else {
+        setValidProjectName(true);
+    }
+    updateWarningStatus();
+}
 
-    if (!directory.isEmpty())
-        m_createinEdit->setText(directory);
+
+void NewProjectDialog::setValidProjectName(bool status)
+{
+    m_valid_projectName = status;
+    QPalette palette;
+    if(m_valid_projectName) {
+        palette.setColor(QPalette::Text, Qt::black);
+    } else {
+        palette.setColor(QPalette::Text,Qt::darkRed);
+    }
+    m_projectNameEdit->setPalette(palette);
+}
 
 
+void NewProjectDialog::setValidParentDir(bool status)
+{
+    m_valid_parentDir = status;
+    QPalette palette;
+    if(m_valid_parentDir) {
+        palette.setColor(QPalette::Text, Qt::black);
+    } else {
+        palette.setColor(QPalette::Text,Qt::darkRed);
+    }
+    m_parentDirEdit->setPalette(palette);
 }
 
 
 
+void NewProjectDialog::updateWarningStatus()
+{
+    if(m_valid_parentDir && m_valid_projectName) {
+        m_createButton->setEnabled(true);
+        m_warningLabel->setText("");
+    } else if(!m_valid_parentDir ) {
+        m_createButton->setEnabled(false);
+        m_warningLabel->setText("<font color='darkRed'> The path '"+getParentDirName()+"' does not exist. </font>");
+    } else if(!m_valid_projectName ) {
+        m_createButton->setEnabled(false);
+        m_warningLabel->setText("<font color='darkRed'> The directory '"+getProjectName()+"' already exists. </font>");
+    }
+}
 
 
diff --git a/GUI/coregui/mainwindow/newprojectdialog.h b/GUI/coregui/mainwindow/newprojectdialog.h
index b05576ae1447cf87fda47d25d2608fd1f3732639..85c3387d1479b952b5e61f4ea768010ae7e3e5d0 100644
--- a/GUI/coregui/mainwindow/newprojectdialog.h
+++ b/GUI/coregui/mainwindow/newprojectdialog.h
@@ -2,11 +2,13 @@
 #define NEWPROJECTDIALOG_H
 
 #include <QDialog>
+#include <QString>
+#include <QLineEdit>
 
 class QLabel;
-class QLineEdit;
 class QPushButton;
 class QStatusBar;
+class QPalette;
 
 
 //! new project dialog window
@@ -18,15 +20,29 @@ public:
 
 private slots:
     void setDirectory();
+    void checkIfParentDirIsValid(const QString &dirname);
+    void checkIfProjectNameIsValid(const QString &projectName);
+
+    QString getProjectName() { return m_projectNameEdit->text(); }
+    QString getParentDirName() { return m_parentDirEdit->text(); }
 
 private:
-    QLabel *m_nameLabel;
-    QLineEdit *m_nameEdit;
-    QLabel *m_createinLabel;
-    QLineEdit *m_createinEdit;
+    void setValidProjectName(bool status);
+    void setValidParentDir(bool status);
+    void updateWarningStatus();
+
+//    QLabel *m_nameLabel;
+    QLineEdit *m_projectNameEdit;
+//    QLabel *m_parentDirLabel;
+    QLineEdit *m_parentDirEdit;
     QPushButton *m_browseButton;
+    QLabel *m_warningLabel;
     QPushButton *m_cancelButton;
     QPushButton *m_createButton;
+
+    bool m_valid_projectName;
+    bool m_valid_parentDir;
+
 };