hmm...and what if you set both querycache and 2nd lvl cache to true and 
*restart* eclipse - does that make a difference for you ?

(note, I know this issue but I have not been able to reproduce it in a long 
time after fixing a bug around it in hibernate)

Alternatively try and set the two options in a seperate .properties file in the 
console config.

If neither helps please open a bug with the minimal project setup that causes 
this issue for you so we can reproduce - thanks!

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