I think that if you look at the "root" of the problem you will find
that this is an access problem
which can be deduced from the line:

> Caused by: java.security.AccessControlException: access denied
> (java.lang.RuntimePermission modifyThreadGroup)
>         at java.security.AccessControlContext.checkPermission(Unknown Source)
>         at java.security.AccessController.checkPermission(Unknown Source)
>         at java.lang.SecurityManager.checkPermission(Unknown Source)
>         at com.google.appengine.tools.development.DevAppServerFactory
> $CustomSecurityManager.checkPermission(DevAppServerFactory.java:151)
>         at com.google.appengine.tools.development.DevAppServerFactory
> $CustomSecurityManager.checkAccess(DevAppServerFactory.java:176)
>         at java.lang.ThreadGroup.checkAccess(Unknown Source)
>         at java.lang.Thread.init(Unknown Source)
>         at java.lang.Thread.<init>(Unknown Source)
>         at java.util.TimerThread.<init>(Unknown Source)
>         at java.util.Timer.<init>(Unknown Source)
>         at java.util.Timer.<init>(Unknown Source)
>         at com.mysql.jdbc.ConnectionImpl.<clinit>(ConnectionImpl.java:208)

Notice the "access denied" part. I think this has nothing to do with
GWT 2.0.

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