Chandu,
Sorry that you are seeing this issue.
1) There might be a reference to the jar file in the .classpath file. Can you please check .classpath file in your project folder ?
2) Also, try to close and re-open the project without closing MyEclipse, this might rebuild the project again. To close the project, right click on project and click ‘Close project’. To open a closed project, right click on project and click ‘Open project’.
3) Please check whether you have updated the project Build Path. Right click on the project name, select “Properties”, go to “Java Build Path”, choose the “Libraries” tab, and see that your library is not in the list. If it’s still in that list, remove it with the “Remove” button.
4) If the above solutions doesn’t work, can you please switch to a new workspace, import your project into your new workspace and check if you can replicate the issue ?
Our latest release is MyEclipse 2013. I suggest you upgrade to MyEclipse 2013, to take advantage of the several enhancements and fixes we made since MyEclipse 7.5. You can download ME 2013 from here. Install it to a different location alongside your existing MyEclipse 7.5 and give it a try.
Let us know how it works for you.