I've looked at the eclipse log and it looks fine.
What is strange is that I realised it is not so much eclipse verison dependent as it is workspace dependent.
Eclipse 3.6 -->pointing to working workspace
Eclipse 3.5 -->pointing to non working workspace
As soon as I switched workspaces 3.5 started encountering the error and 3.6 started to work.
So naturally I proceeded to copy the working project over to the non working workspace, but it still did not work!
So I tried creating a new workspace on both platforms and neither of them works.
Now I'm guessing it must be some type of config for the plugins in the specific workspace? But I find it strange since both of them are fresh installs.