Dusty, can you check if you get the following error in the error log in the Plug In Development perspective of Eclipse 3.2 ?
Uncaught exception in compiler According to this page<http://www.adobe.com/support/documentation/en/flex/2/releasenotes_flex201_sdk.html>, this error should be fixed ... MXML Compiler and compc: 178814 Uncaught exception in compiler This is what is causing our headaches ; )

