I just installed Eclipse and ErlIDE without problems, checked the correct settings for the Erlang top-level directory and restarted the IDE.
I created a test project with a very easy program, However, I notice a compilation error right away "Could not compile file" and erl.exe eating 99% of the cpu.

Any ideas?
xapwing@gmail.com

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!SESSION 2009-07-09 17:27:47.421 -----------------------------------------------
eclipse.buildId=I20090611-1540
java.version=1.6.0_14
java.vendor=Sun Microsystems Inc.
BootLoader constants: OS=win32, ARCH=x86, WS=win32, NL=nl_NL
Framework arguments: -product org.eclipse.epp.package.java.product
Command-line arguments: -os win32 -ws win32 -arch x86 -product org.eclipse.epp.package.java.product
!ENTRY org.eclipse.ui 2 0 2009-07-09 17:27:50.453
!MESSAGE Warnings while parsing the key bindings from the 'org.eclipse.ui.commands' extension point
!SUBENTRY 1 org.eclipse.ui 2 0 2009-07-09 17:27:50.453
!MESSAGE Cannot bind to an undefined command: plug-in='org.erlide.ui', id='org.erlide.ui.navigator.actions.erlang.actions.OpenProvider'
!SUBENTRY 1 org.eclipse.ui 2 0 2009-07-09 17:27:50.453
!MESSAGE Cannot bind to an undefined command: plug-in='org.erlide.ui', id='org.erlide.ui.search.references.in.workspace'


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17:27:53,031 F: (ErlangPlugin.java:161) : Starting CORE Thread[main,6,main]
17:27:53,046 I: (ErlangPlugin.java:172) : *** starting Erlide v0.6.3.200906231213 ***
17:27:53,093 F: (BackendManagerImpl.java:176) : creating IDE backend erl5.7.2
17:27:53,125 F: (BackendManagerImpl.java:95) : create managed [AUTOSTART] backend 'Backend<erl5.7.2/7acfddf_arie_erlide (c:\program files\erl5.7.2) R13B01 []>' Thread[main,6,main]
17:27:53,171 F: (ManagedLauncher.java:43) : START node :> "c:\program files\erl5.7.2/bin/erl" -name 7acfddf_arie_erlide@tauceti -setcookie erlide
17:27:53,187 F: (ErlideBackend.java:41) : disposing backend 7acfddf_arie_erlide
17:27:53,187 F: (Backend.java:203) : disposing backend 7acfddf_arie_erlide
17:27:53,187 F: (Backend.java:218) : connect to:: '7acfddf_arie_erlide' Thread[main,6,main]
17:27:53,343 F: (Backend.java:234) : using cookie 'erlide...'6 (info: 'erlide')
17:28:11,250 S: (Backend.java:486) : error starting code server for erl5.7.2: org.erlide.jinterface.rpc.RpcException: could not restart backend
17:28:11,250 S: (Backend.java:251) : could not connect to backend! Please check runtime settings.
17:28:11,250 S: (ErlideUtil.java:84) : org.erlide.jinterface.rpc.RpcException: could not restart backend
org.erlide.jinterface.backend.BackendException: org.erlide.jinterface.rpc.RpcException: could not restart backend
at org.erlide.jinterface.backend.Backend.call(Backend.java:143)
at org.erlide.jinterface.backend.Backend.call(Backend.java:134)
at org.erlide.jinterface.backend.Backend.call(Backend.java:123)
at org.erlide.core.erlang.util.ErlideUtil.isAccessible(ErlideUtil.java:65)
at org.erlide.runtime.backend.internal.CodeManager.registerBundle(CodeManager.java:216)
at org.erlide.runtime.backend.internal.CodeManager.register(CodeManager.java:84)
at org.erlide.runtime.backend.ErlideBackend.register(ErlideBackend.java:73)
at org.erlide.runtime.backend.internal.BackendManagerImpl.create(BackendManagerImpl.java:109)
at org.erlide.runtime.backend.internal.BackendManagerImpl.getIdeBackend(BackendManagerImpl.java:179)