When I try to run the auto generated code in my google web app project using GAE I get the following error:
Mar 19, 2014 5:21:28 PM com.google.appengine.tool
iQue,
I encountered exactly the same problem, and I discovered that my eclipse was using JRE 8 (version 1.8). I didn't intend this, and when I changed it to 1.7, this solved the problem.
Edit: Window -> Preferences -> Java -> Installed JREs. Checked jre7 to make it default.
Relevant note: The App Engine installation instructions say to use 1.7 (but don't say you can't use 1.8): https://developers.google.com/appengine/docs/java/gettingstarted/installing
In my case in addition to what is mentioned in Kevin answer, I also had to modify the value of java to 1.7 in run configurations.
Have you checked to see if App Engine SDK is present on your project?
If not, go to Window -> Preferences -> Google -> App Engine and add it.