Actually, the App Engine 1.3.5 SDK has been packaged with the Google Plugin
for Eclipse. The reason that it does not come up when you use "Check for
Updates" is because we change the feature id of the SDK bundle for each
release (to prevent Eclipse from removing "features" that it thinks are
unused
Turns out that one needs to download the latest version of the sdk and
configure eclipse it:
http://code.google.com/eclipse/docs/using_sdks.html
@Hari,
The update will not get you the latest version of GAE because the
latest version of the plugin uses an older version of GAE.
Regards,
Navaneeth