If you are running an older Sun JRE on Windows Vista there may be some issues with time zone detection, in which case Java defaults back to UTC. This was causing problems with my local copy of ColdFusion MX 7 Server and Eclipse 3.2.2.
ColdFusion: ColdFusion is distributed with an internal JRE that I updated to 1.4.2_14. This was not the most recent version available at the time, but I wanted to match my production web server. (BTW, if you need older versions of Java you you can download them here) I had better luck downloading and installing the SDK as opposed to the stand-alone JRE. With the SDK you still have to run the setup EXE, but you can choose to just install the developer tools and nothing else. Once it was installed I stopped ColdFusion and went into my CFusionMX7\runtime folder and backed up the existing jre directory. I then copied the jre directory from the SDK install into my ColdFusion runtime folder and restarted ColdFusion Server. This fixed my CF issue immediately.
Eclipse: In my case updating Eclipse was simliar to updating ColdFusion. Since I had the FlexBuilder 2 Plug-in installed, it had taken over as Eclipse’s internal JRE. Updating the jre installation underneath the FlexBuilder 2 Plug-in install directory fixed my Eclipse issue as well.