I have not used JBoss Developer Studio (JDS) 2.1 Portfolio Edition, so I cannot 
say which one is better.

It is my understanding that JDS is geared towards building applications with 
the corresponding JBoss Enterprise Application Platform (EAP). Thus if you want 
to use EAP and a development environment that has tight integration with it, 
then use JDS. Whihc means you are stuck using that version fo EAP, and thus the 
version of JBoss AS on which is is based.

If you want to use the latest and greatest version of JBoss AS, stick with the 
latest Eclipse and the latest JBoss Tools.

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