I wish I could give you guys more information on what's going on, but I really have no idea. I am trying to install groovy and grails tools suite from springsource and I am having trouble configuring it to work properly. I have the most up to date JDK, and the preferences show it, but I still get warnings and it does not build. I have posted some pictures below to show what is going on.
I faced a similar issue (I am sure it is the exact issue) - Here are the steps to ensure it works correctly, I struggled with initially but this got it going.
Let me know if that does not work.
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