NWDS generated JSP not found

I am using NWDS 7.0.09 with the included NetWeaver Application Server

I have created a project with a folder structure of webcontent/html

In here I have put html files and jsp files.

I also created a jsp using the NWDS wizard for a simple test.

When I try to run this, I get an error:

The requested resource test.jsp is not available ....not found in application root of alias of J2EE application. However if I change the URL to the html page, it finds those in the same directory.

I have also checked the application alias and it seems setup correctly.

Any suggestions?