vbolisetti,
The latest BIRT version is 3.7 and it is supported in Eclipse 3.7. MyEclipse is based on Classic Eclipse. So you will have to wait for MyEclipse 10 which is based on Eclipse 3.7 to be able to work with BIRT 3.7 version. MyEclipse 10 is in development right now and it will be released in a month’s time.
However, if you want to work with BIRT 2.6.x version, you can upgrade to MyEclipse 9.1 (which is based on Eclipse 3.6).
You can download MyEclipse 9.1 from this link :
http://www.myeclipseide.com/index.php?name=Recommend_Us&req=Download&version=ME
Alternatively you can use Pulse to install MyEclipse 9.1. Here is the FAQ :
https://www.genuitec.com/forums/topic/installation-how-to-install-myeclipse-from-pulse/
Let me know if you have any issues.