As seen from the attached picture, the error highlighting in the editor is not synced with the file contents. It can be reproduced as shown in the attached video: 1. create new method from usage 2. use default return type, press enter 3. use default parameter type, press enter 4. when entering the parameter name, move the cursor left with the arrow keys (important for reproducing!) so that the cursor will be somewhere inside the parameter name, the red borders around the parameter name should still be visible, then press enter 5. now the method is highlighted red as if it had not return statement, even though the editor just added a "return null;" The error highlighting gets back to sync only after the just created method is modified. Modifications elsewhere in the file may not always fix the error highlighting. I've also uploaded a memory snapshot to the FTP server: 7938_ORFJackal_18.08.2008_15.19.34.zip