Unable to use Vaadin with Google Eclipse plugin

When I was working on Vaadin 6.1 and 6.2 in Eclipse, I could create a Vaadin project and then change project properties to enable GAE. Then I would be on my merry way creating and running Vaadin applications in Eclipse.

Recently I installed 6.3pre1, created a Vaadin project Z with it and then enable GAE 1.3.2, but that does not work anymore - it gives me HTTP ERROR 500

Caused by: java.lang.ClassNotFoundException: com.google.appengine.api.datastore.EntityNotFoundException
at java.net.URLClassLoader$1.run(URLClassLoader.java:217)
at java.security.AccessController.doPrivileged(Native Method)
at java.net.URLClassLoader.findClass(URLClassLoader.java:205)
at java.lang.ClassLoader.loadClass(ClassLoader.java:319)
at com.google.appengine.tools.development.IsolatedAppClassLoader.loadClass(IsolatedAppClassLoader.java:151)
at java.lang.ClassLoader.loadClass(ClassLoader.java:264)
at java.lang.ClassLoader.loadClassInternal(ClassLoader.java:332)

Q1.
Has there been any change in 6.3 that prevents me from using GAE plugin with Vaadin?

Q2.
I am attempting to use Google plugin jetty because when I use Vaadin's "generate Development Mode launcher", the resulting launcher "Z Dev Mode launcher" does not launch jetty at all.

Q3.
Do I have to create my own Jetty server instance to use the launcher generated by Vaadin? I am kinda lazy having to learn how to do that because Google plugin has been doing it for me. While I did try to create one from /usr/share/jetty as jetty home, after launching "Z Dev Mode launcher", jetty responds with a page saying the only context it has is /javadoc, not Z context at all.

I realise that I could use Vaadin project property panel to specify deployment config = gae servlet. It does not help - the launcher would not work nor would enabling gae using google config, regardless if I initially created the vaadin project by specifying "deployment config = gae servlet" or not.

I really would like to use Google plugin jetty rather than having to manage launching files. I would like to remember only one way to launch/debug GAE/GWT projects for both vaadin and non-vaadin projects - using Google's plugin. Please help advise how I could achieve that.

BTW,
I am able to run 6.3 demo by importing it as a project into Eclipse.

I am only able to run the Vaadin development server launcher.

1. Failure to launch demo using Hosted Mode launcher:
The hosted mode launcher fails to launch jetty. When I click on [launch default browser], the browser page says "Firefox can't establish a connection to the server at localhost".

Vaadin web site and book of vaadin tells me to install tomcat, but I should believe that I should not run my project on tomcat but on jetty because the target deployment is gae. But I don't know how to associate my vaadin project or the demo project to the existing jetty server instance in eclipse.

2. Failure to launch project Z using Hosted Mode launcher:
However, during launch of project Z, an exception in org.eclipse.swt.internal.Library did occur
"java.lang.UnsatisfiedLinkError: Can't load library: /home/icecream/.eclipse/org.eclipse.platform_3.5.0_155965261/configuration/com.vaadin.integration.eclipse/download/gwt-dev/1.7.0/libswt-pi-gtk.so"

Why is vaadin launcher trying to load gwt 1.7.0? I have already uninstalled 1.7.0 for both vaadin and google.

I also have latest Google plugin installed and face no issues running the usual GWT/GAE projects using codeserver mode.