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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Groovy 2.0 is now available in Groovy-Eclipse as an optional add-on. We have not yet made the compiler default because we make our default compiler compatible with the default compiler of the latest release of Grails. At the time of this release, Grails is at version 2.0.4, which uses Groovy 1.8 as its compiler. When Grails moves to being based on Groovy 2.x, Groovy-Eclipse will move its default compiler as well.