Ueland,
Just so I understand the issue, you have two developers working on the same project. 1 developer can create new web services just fine but the other one can’t?
For the dev that cannot create new web services, does the wizard spit out any errors when it runs or does it seem to complete correctly?
Also if you check the <workspace dir>\.metadata\.log file after running the wizard on Vista, are there any errors logged to it?
Lastly, which directory has the Vista user created his workspace in? There are special “protected” directories on Vista now that will impact his ability to write files correctly to those dirs unless he is running MyEclipse as administrator. You can right-click on the MyEclipse shortcut and click on “Run as Administrator” to work around the issue if necessary.