A couple of other thoughts...
If you didn't before, you might try compiling and/or running a small java program from the command line.. maybe write up a quick Hello World and try to compile it. If that fails, then you'll *know* that your JDK is horked, in which case you can probably proceed directly to removing and re-installing it.
OTOH, if that works, you can possibly assume the problem is something specific to Eclipse, which might help you narrow down the search a little. Posting something to the eclipse newsgroups might not be a bad idea either, if you haven't done that yet.
It might also be worth going into the preferences for a specific project, look at the "java build path" stuff, and make sure the "JRE System Library" is listed on the libraries tab.
TTYL,
Phil
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