I have this problem as described in the project FAQ:
http://docs.codehaus.org/display/M2ECLIPSE/Project+FAQ#ProjectFAQ-UnabletolocatetheJavacCompilerError

The only solution that works for me is using the eclipse compiler. I was hoping 
to use the JDK compiler. Does anyone have any advice on this?

I am using eclipse 3.4 on Windows and have tried both updating the eclipse.ini 
and using the -vm argument to eclipse to point to the JDK.

Andrew

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