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I have created a listener that detects legacy m2eclipse projects and provides a way for users to migrate them to new m2e projects. The conversion process changes the .classpath, .project files to remove any invalid org.maven.ide.* entries and replaces them with org.eclipse.m2e.* entries. It does not touch the .settings folder or any launch configurations. Currently, this functionality is tied into the SpringSource Tool Suite, but if there is any interest in having this support inside of m2e, I could contribute this to the project.
Andrew, we (JBoss Tools team) are interested in this feature. I think it might be beneficial for the community at large if you open-sourced that migration tool :-D
*** Bug 368003 has been marked as a duplicate of this bug. ***
closing old/stale bugreports
Moved to https://github.com/eclipse-m2e/m2e-core/issues/