Narahari,
If you are developing 32 bit applications, which I think you are, just make sure the default JRE is a 32 bit JDK. This can be set from Window->Preferences_Java->Installed JREs. You can choose the JRE on a per project basis by right-clicking on the project and then going to Properties->Java Build Path and clicking on the Libraries tab to set the correct installed JRE system library.
MyEclipse comes with both 32 bit and 64 bit JDKs, though you can use a separately installed one, if you want.