I wiped out my Eclipse installation and started fresh with the Callisto Release Candidate. I'm particularly interested in the latest Eclipse Webtools package, which will fix a circular loading bug that prevents the CDA schema from being loaded.
I ran into a problem I've seen before — my eclipse.ini settings don't always seem to take effect. With the v3.1 version of Eclipse, my extended memory limits (-Xmx…) were being ignored unless I specified them on the command line. Now, the latest Eclipse insists on using the VM at c:\windows\system32\javaw.exe, and I can't understand why.
Here’s my ini file:
-vm c:\Program Files\Java\jre1.5.0_07\bin\java.exe -vmargs -Xms64m -Xmx1024m
And here’s what Eclipse reports in "Configuration Details":
-vm c:\Program Files\Java\jre1.5.0_07\bin\java.exe -vm C:\WINDOWS\system32\javaw.exe eclipse.vm=C:\WINDOWS\system32\javaw.exe eclipse.vmargs=-Xms64m -Xmx1024m
It turns out that I don’t need to specify -vm at all, since the Sun JDK installer replaced windows\system32\javaw.exe with Sun’s version. However, I’m annoyed that I can’t pick my own VM.
The eclipse.org eclipse.ini reference I found wasn’t very helpful on this point.

Patrick,
I noticed if you make an eclipse.bat, which looks something like this:
eclipse.exe -vm “c:\program files\Java\jre1.5.0_07\bin\javaw.exe” -vmargs -Xms256m -Xmx512m
eclipse will use a jvm other than the windows jvm.
-Ian