Product Version: NetBeans IDE Dev (Build 20080425101413)
Java: 1.6.0_10-beta; Java HotSpot(TM) Client VM 11.0-b11
System: Linux version 2.6.22-14-generic running on i386; UTF-8; en_US (nb)

Create local variable generates declaration at wrong position, if there is variable with the same name in the another block.

Steps to reproduce:
0) configure the hint to create local variable at the place of first usage
1) have a method fragment:
        for (int i = 0; i < childs; i++) {
            Object child = model.getChild(parent, i);
            al.add(child);
        }
        if (level <= sortLevel) {
            sortChilds(al);
        }

        while(!al.isEmpty()) {            
            child = al.remove(0);
            browseChildren(model, child, level + 1);                    
        }

2) in the last block('while') use create local variable,

-> the Object child is created before the first block. This cause error in code, since the redeclaration in the 'for' block

        Object child;
        for (int i = 0; i < childs; i++) {
            Object child = model.getChild(parent, i);
            al.add(child);
        }
        if (level <= sortLevel) {
            sortChilds(al);
        }

        while(!al.isEmpty()) {            
            child = al.remove(0);
            browseChildren(model, child, level + 1);                    
        }