I was getting the same error ("Root Location Needs to be a Directory!")
In my case, the problem was with the way i had specified the destination folder path for the generated files
Changed the wsdl2java command from:
wsdl2java -s -S “D:\Srini\MyProject\Build\Workspaces\ServiceProvider\src-gen” -ssi LoginInterface -u -or -Ejavaversion 1.5 -uri LogonServices.wsdl
wsdl2java -s -S \..\src-gen -ssi LoginInterface -u -or -Ejavaversion 1.5 -uri LogonServices.wsdl
In case this helped, congratulations!