4. Are you trying to install Eclipse into C:\Program files or some other
read-only location?

Yes and that was the problem! Thanks for the pointer!
I unzipped the eclipse archive into another directory and after the AJDT
update it worked.

This is an unfortunate problem with the current way that p2 (the
Eclipse installer/provisioner) handles shared installs (ie- the
install directory is read-only).

There is a big push to make this nicer for the Juno (4.2) release.

Thanks for your help...I am still trying to wrap my head around these changes.
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