I haven't solved this completely yet, but I have a handle on it. The problem appears to be with MyEclipse 7.1. The libraries that MyEclipse is using are not compatible with those of eclipse 3.4.2. I haven't verified this, but I'll bet that they aren't compatible with 3.4.1 either.
Initially, I was pulling down their "Install in One" executable and trying to work from that. Since Instantiations (and any other plugin installation) is looking for a classic eclipse folder with eclipse.exe, that doesn't work. For reasons that I never did figure out, while dropping RCPDeveloper into the MyEclipse dropins folder worked just fine, dropping RCPPackager into the same folder didn't. After fighting that for a couple of weeks, I switched to another approach.
I downloaded eclipse classic directly from the eclipse site and built from there. (I actually downloaded all of the eclipse 3.4.2 builds, but the classic installation was were I found what I believe is the problem).
My first pass with this approach failed. I installed MyEclipse, RCPDeveloper, RCPPackager and then attempted to update. I got an error message on org.eclipse.ui.ide. The exact error message was a red-herring.
2nd pass: I re-installed classic, updated it. Then I installed Instantiations. Then I updated eclipse from the eclipse help tab. This worked fine!
Then I attempted to install MyEclipse from the MyEclipse archive folder [I have limited download bandwidth, so I very much appreciated having the ability to download and use an archive folder!!! Thank-you MyEclipse]. This step is where the problem comes in. When attempting to use the eclipse update process to install MyEclipse into a current eclipse installation, I get a series of warnings from the update process that:
(1) the MyEclipse libraries were older then those already installed,
(2) that there were mutually exclusive dependencies and
(3) that there were missing resources.
Sigh. I really like the JPA support provided by MyEclipse and the UML modeling is also nice. But right now, it appears that the latest version of MyEclipse isn't compatible with an updated eclipse 3.4.2.
BTW: The "update" site specifically tells you to uninstall RCPDeveloper if you loaded it by any other means, prior to
installing from that site. I installed using the zip files and dumping them under dropins. If I attempt to
update using this site, will it blow up? If I can't update an existing Instantiations install via this site, is there another one where I can?