Ok finally got it to work.

I uninstalled the Android SDK and deleted the eclipse (basically the folder)
Then I deleted the .android folder under USER_HOME also.

Restarted computer - no remnants of the previous install should be there 
now.

Redownloaded the ADT+eclipse package and unzipped it under my user folder.

Previously I had it under c:\ - just wanted to avoid any permission issue.

Created a new eclipse workspace and imported my projects back into this one.

Worked fine.

Treking - i'm sure you're right about moving to Studio.I'm used to eclipse 
and
want to give one more try...next major problem like this and it's gone.

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