i also experience similar problem with maven 2.1-M1 and m2eclipse 0.9.6. when
i declare a profile with dependencyManagement section in settings.xml,
m2eclipse throws this exception:


[ERROR] Failed to read settings from: D:\apache-maven\conf\settings.xml.
Throwing XmlPullParserException...

complaining that dependencyManagement tag wasn't expected (while even
according to the schema it can be placed within a profile and eclipse xml
editor shows no problems):


Unable to parse global settings file;
org.codehaus.plexus.util.xml.pull.XmlPullParserException: 
Unrecognised tag: 'distributionManagement' (position: START_TAG seen
...</id>\r\n      <distributionManagement>... @239:31) 


my profile definition is as simple as it could be:


    <profile>
      <id>production</id>
      <distributionManagement>
        <repository>
          <id>pro</id>
          <url>path_to_repository</url>
        </repository>
      </distributionManagement>
    </profile>


and if i just remove dependencyManagement section, parsing goes ok.

can you please confirm if this is the same maven problem or a brand new
m2eclipse bug?
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