Specifying a plugin location for development purposes appears to be broken in 2.0 RC1. I'm getting an unresolved dependency for the plugin during "run-app". It appears to be ignoring the setting, although I've run through the debugger a bit and it looks like the code in AbstractBuildSettings is finding it. I've tried specifying both relative and absolute paths to the plugin directory.
grails.plugin.location.myplug = "../myplug"
I am attaching a tar file that shows the issue. There is a directory for grails 1.3 and one for 2.0. Under 1.3, this works, but under 2.0 it does not. The only thing I've done to these projects is to add the plugin dependency to the application and set the above location config.