For Eclipse 3.8 and 4.2 (Juno):
For Eclipse 3.7 (Indigo):
You can install from the zip by pointing your Eclipse update manager to the downloaded zip file and following the installation instructions. Do not unzip into your Eclipse dropins folder.
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Upgrade to Groovy 2.0.6
Groovy-Eclipse now contains Groovy 2.0.6 as an optional add-on from the update site. See Compiler Switching within Groovy-Eclipse for more information on how to do this.