I suddenly started getting GEF plugin problems.
I followed the solution from another thread to fix the problem. I unzipped the Eclipse 3.0 SDK into a new directory. Uninstalled MyEclipse and re-installed beta 2 again. That not only fixed the GEF problem, it also fixed my problem.
So perhaps installing beta 2 on top of beta 1 may not be a good idea.
Thanks a lot for your help.