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RC2 I assume this is a dupe of a previous bug reported but thought I should report just in case. For a java project, Properties->Java Build Path->Libraries->Add Library In the wizard, pick JRE System Library, Next. Pick "Add". When you add a new library to the list of known/available libs, the outline flashes quite noticeably.
This is related to 34919
Marking as later since debug 34919 will not be fixed for 2.1
Reopening...
Looks good using I20030910. Please reopen with exact steps if you still see this.