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i faced this same problem. systemserviceservlet seems to be needed only if you want to deploy the web admin servlet in jetty.

in my case the issue was the gae eclipse plugin was using gae java sdk 1.6 by default and the package is no even there. i fixed it by setting the sdk manually to gae sdk 1.7.

be careful when changing the sdk, i tried by changing the default sdk but still had this problem until i selected "use specific sdk" pointing to 1.7.


solution in my situation - just kill all javaw.exe *32 process in task manager.


i'm using maven, but had the same problem. with maven we don't have the sdk version set in project properties, instead we have this plugin:


to solve the exception: window/show view/other... > servers/server and then right click on the used appengine server then click clean....

note: this will wipe your local dev datastore, so make a backup of the file if you want to keep your data:


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