Good news is Eclipse running happily on this build(winxp sp2), so I tried to install subclipse plugin and checkout Harmony trunk to workspace. I used the update site, and everything seems fine. After installation, Eclipse asked me if I want to restart, I clicked yes and then the Eclipse workbench closed, when it appears again, an Windows standard error dialog come with it, which shows VM launcher encountered errors and must be closed. The .log in workspace just has nothing printed out yet. When I closed Eclipse and removed the subclipse jars from eclipse/plugins directory, the issue disappears.
IBM VME doesn't have this problem.  http://subclipse.tigris.org/update_1.2.x -- Paulex Yang China Software Development laboratory IBM