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My suggestions are;
1. Uninstall all previous versions of eclipse and reinstall the Eclipse 3.5.
2. Please check the IP address of VMware Studio in the link given in step #3 from procedure*
3. I am not sure but while installing plugin, it might ask you to install dependencies. So please check the browser properties to download the files. It seems dependency problem. So recheck step#3 from procedure*
4. Please restart the Eclipse after installing plugins
5. Please check JDK is installed or not.
Make sure that the proxy can be reached.
Restart your eclipse after installation.
I recommend trying it on Eclipse 3.4 first
This is a lab environment and had no access to internet. I did not know it needed to download the dependencies, I thought they were included on the VMware Studio appliance. I gave the VM internet access and everything went fine after that. Thanks again.