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When you choose to create a new RESTful service from Entity class and that Entity is in a separate, but linked project, the entity will not be found and will not be displayed in the Available Entity Classes list. I Use openSolaris and have not tested to see if it happens on other systems.
It seems this is related to bug #144795
Please clarify the problem. What do you mean by "Entity is in a separate, but linked project" ? Did you include jar file ( separate projects result of build ) in your compile classpath ? Or you mean smth. else ? In the first case all works fine at least with current NB version for me.