+1  A: 

It does not seem to be related to eclipse 3.5 (it has been reported with eclipse3.2 or 3.1.2).

In one case, it was because the build was using:

 -Djava.endorsed.dirs

which happened to point on an old Ant version.

Another said its Ant->Runtime / "Ant Home" was erroneously set to the current project dir. setting it to /usr/share/ant makes ant work properly. (But you said that "eveything was in order" there).

A third had to manually add

/usr/lib/eclipse/plugins/org.apache.ant_1.6.5/lib/ant-launcher.jar

to the Ant classpath in the preferences to make it work.

It all boils dow to an older version of Ant being somehow referenced.

VonC
Thanks. I'm indeed using the latest 3.5, not an older version. And teh ANT version I'm using is pointing to the one included with eclipse itself. (inside eclipse/plugins). One additional thing I should mention is that I'm using Mac OSX
CVertex
Also, I already set the ANT_HOME folder to the eclipse/plugin/org.apache.ant_1.7.1.v20090120-1145 and still see the same error
CVertex
A: 

I tried for far too long to solve this problem, so I resorted to the good ol` truism, "Java hates OSX" and decided to try the whole process on Vista... and BAM! worked first time, no issues.

So, the answer to my question is "Don't use OSX, use Windows or Linux".

I'm not a jerk so I posted this platform bug in Eclipse bugzilla.

VonC was indeed awesome enough to give me really good advise and point to other bugs I couldn't find.. he deserves more votes..

CVertex
Thank you for this feedback, I will check out that bug entry.
VonC
Look, I'm developing plugins on OS X for a couple of years now. Never had this issue. Did you recently upgrade to Snow Leopard?
zvikico
No, haven't upgraded to Snow Leopard. What can else can I say, I have the default Eclipse 3.5 install + GEF + PLatform SDK... i have no idea what went wrong
CVertex