In our case, the wrong version of the Sysdeo Tomcat plugin for Eclipse 3.5 was being used. The fix:
- Use
tomcatPluginV33 instead of tomcatPluginV321 (extract to C:\eclipse\dropins)
- Ensure that
DevloaderTomcat7.jar was placed in the tomcat lib folder
- In Window > Preferences > Tomcat, set the Tomcat version to 7.x
This problem may have been unique to our environment; but, I'll record it here anyway, for posterity's sake.