I was experimenting with AppFuse 2.0.2 and Eclipse (version 3.3.2 on Mac OS X 10.5.5) and got the problem with dataAccessFailure.jsp and login.xml (see also http://issues.appfuse.org/browse/APF-649, errors 1 and 3), my solution was to rewrite the exception throwing code from:

    Exception ex = (Exception) request.getAttribute("exception");
    ex.printStackTrace(new java.io.PrintWriter(out));

    to

    ((Exception) request.getAttribute("exception")).printStackTrace(new java.io.PrintWriter(out));

That solves the mistaken error message about the duplicate variable ex, I agree that it shouldn't happen, but now at least this error is resolved and the code is semantically equivalent. Maybe you can put this in your code repository?

The only way to solve the login.xml problem was to rename login.xml to login.xmlfragment (or anything else as long as it isn't .xml). This way Eclipse won't treat it as xml, which technically it isn't. See also http://www.w3.org/TR/REC-xml/#dt-wellformed.

Another solution might be to define the entity as an internal parameter entity.