John,
Before we troubleshoot this, can you upgrade your installation of MyEclipse to 3.7.1 as there have been 2 bugfix releases since the RC2 release.
Also you mentioned you have RC2 running on Eclipse M7 which was not a supported setup, but a few people were able to hack it to work. I think all of these combinations might be contributing to the problem you are seeing and would like to rule them out before I filed a bug on this or started to suggest solutions.