I've been using the development version of the m2eclipse plugin.  It 
seems to work pretty well for me.
Hiroki and I have all updated to it now.

http://m2eclipse.codehaus.org/update-dev/

This plugin seems to do better at downloading dependencies.  It also 
automatically uses your eclipse projects instead of the jars in your 
local maven repository.

Let me know how it goes.

Scott

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