The solutions is in this thread:
http://groups.google.com/group/google-appengine-java/browse_thread/thread/df660675d21c64f0
SDK 1.2.6 requires the JVM argument -javaagent:sdk_root/lib/agent/
appengine-agent.jar
If you are using the Eclipse plugin, the upgrade to 1.2.6 doesn't
automatically add
Hi Keith and Peter,
This helped me, thanks. It would help others if the release notes of
the eclipse plugin http://code.google.com/eclipse/ mentioned that
upgrading would break existing projects. I was assuming that I had
broken something until I remembered that I upgraded recently.
In case it