Okay on Edgy the problem goes away by downgrading the xserver-xorg-core
back to xserver-xorg-core_1.1.1-0ubuntu12.2

here is what I did (on Ubuntu Edgy) to get my Eclipse back

sudo wget 
http://at.archive.ubuntu.com/ubuntu/pool/main/x/xorg-server/xserver-xorg-core_1.1.1-0ubuntu12.2_i386.deb
sudo dpkg -i xserver-xorg-core_1.1.1-0ubuntu12.2_i386.deb
<restart xserver>

back to work now :)

-- 
xserver-xorg-core update breaks java apps
https://bugs.launchpad.net/bugs/183969
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