SnowLeopard+Eclipse+GWT+GAE+Java Update=Broken!

[Maneesh Godbole]

I updated the JDK on my snow leopard.
I have a GAE+GWT project in Eclipse.
After the update, when I try to Run/Debug my project in Eclipse either of the two happens
1) Jetty starts and immediately shuts down.
2) It starts and gives me the URL . When I try to hit it from the browser, I get something like Firefox can't establish a connection to the server at 127.0.0.1

Anybody got a clue?

[Maneesh Godbole]

Update:
I followed Shengta's solution and it fixed the issue for me http://code.google.com/p/googleappengine/issues/detail?id=4712