This should address #106, but probably should be reviewed.

app/views/projects/_git_urls.erb

@@ -11,7 +11,7 @@
 
 		<script type="text/javascript">
 
-			guProjectName= "<%= (@project.parent ? GitHosting::get_full_parent_path(@project, false) + "/" : "" ) %>" + "<%= @project.repository.url %>".replace(/^.*\//, "")
+			guProjectName= "<%= (@project.parent ? Setting.plugin_redmine_git_hosting['gitRepositoriesUseParentPath'] ? GitHosting::get_full_parent_path(@project, false) + '/' : '' : '' ) %>" + "<%= @project.repository.url %>".replace(/^.*\//, "")
 			guProjectIsPublic= <%= project.is_public.to_s %> ;
 			guUser= "<%= User.current.login %>"
 			guUserIsCommitter= <%= User.current.allowed_to?(:commit_access, project) ? "true" : "false" %> ;

app/views/settings/_redmine_git_hosting.html.erb

@@ -10,6 +10,11 @@
 		<%= select_tag("settings[deleteGitRepositories]", options_for_select([[l(:label_enabled), 'true'], [l(:label_disabled), 'false']], @settings['deleteGitRepositories'])) %>
 		<br />
 	</p>
+	<p>
+		<label><%= l(:label_git_repositories_use_parent_path)%></label>
+		<%= select_tag("settings[gitRepositoriesUseParentPath]", options_for_select([[l(:label_enabled), 'true'], [l(:label_disabled), 'false']], @settings['gitRepositoriesUseParentPath'])) %>
+		<br />
+	</p>
 	<p>
 		<label><%= l(:label_git_show_urls)%></label>
 		<%= select_tag("settings[gitRepositoriesShowUrl]", options_for_select([[l(:label_enabled), 'true'], [l(:label_disabled), 'false']], @settings['gitRepositoriesShowUrl'])) %>

config/locales/en.yml

@@ -1,6 +1,7 @@
 'en':
   label_all_git: Automatically Initialize Git Repositories For New Projects
   label_delete_git_repositories: Delete Git Repository When Project is Deleted
+  label_git_repositories_use_parent_path: Use Parent Projects for Subdirectories
   label_git_server: Gitolite Server Domain
   label_http_server: HTTP Server Domain (for git http urls)
   label_git_user: Git Username

init.rb

@@ -21,6 +21,7 @@
 		'gitoliteIdentityPublicKeyFile' => RAILS_ROOT + '/.ssh/gitolite_admin_id_rsa.pub',
 		'allProjectsUseGit' => 'false',
 		'deleteGitRepositories' => 'false',
+		'gitRepositoriesUseParentPath' => 'false',
 		'gitRepositoriesShowUrl' => 'true',
 		'gitCacheMaxTime' => '-1',
 		'gitCacheMaxElements' => '100',

lib/git_hosting.rb

@@ -106,17 +106,19 @@ def self.sudo_web_to_git_user
 
 	def self.get_full_parent_path(project, is_file_path)
 		parent_parts = [];
-		p = project
-		while p.parent
-			parent_id = p.parent.identifier.to_s
-			parent_parts.unshift(parent_id)
-			p = p.parent
+		if Setting.plugin_redmine_git_hosting['gitRepositoriesUseParentPath'] == 'true' 
+			p = project
+			while p.parent
+				parent_id = p.parent.identifier.to_s
+				parent_parts.unshift(parent_id)
+				p = p.parent
+			end
 		end
 		return is_file_path ? File.join(parent_parts) : parent_parts.join("/")
 	end
 
 	def self.repository_name project
-		return "#{get_full_parent_path(project, false)}/#{project.identifier}".sub(/^\//, "")
+		return "#{get_full_parent_path(project, false)}/#{project.identifier}".sub(/^\/+/, "")
 	end
 
 	def self.repository_path project
@@ -136,7 +138,7 @@ def self.add_route_for_project(p)
 	def self.add_route_for_project_with_map(p,m)
 		repo = p.repository
 		if repo.is_a?(Repository::Git)
-			repo_name= p.parent ? File.join(GitHosting::get_full_parent_path(p, true),p.identifier) : p.identifier
+			repo_name = GitHosting::repository_name(p)
 			repo_path = repo_name + ".git"
 			m.connect repo_path,                  :controller => 'git_http', :p1 => '', :p2 =>'', :p3 =>'', :id=>"#{p[:identifier]}", :path=>"#{repo_path}"
 			m.connect repo_path,                  :controller => 'git_http', :p1 => '', :p2 =>'', :p3 =>'', :id=>"#{p[:identifier]}", :path=>"#{repo_path}"

lib/git_hosting/patches/projects_controller_patch.rb

@@ -37,6 +37,9 @@ def disable_git_daemon_if_not_public
 			end
 
 			def update_git_repo_for_new_parent
+				# this is basically unneeded if not moving repos to sub directories
+				# but using the configurable flag, it just means the old location will equal the new location
+				# it might still be best to use a check to disable running this function completely if the flag is set.
 				if @project.repository != nil
 					if @project.repository.is_a?(Repository::Git)
 						old_parent_id = @project.parent ? @project.parent.id : nil