Eclipse 3.4 ships with two update managers, Equinox p2 and old update manager. There has been lot of comments about p2 and it's immaturity.
I also tend to install plugins that are not part of official distribution to separate folder, so it is clear, which files and folders belong to which plugin. P2 doesn't allow this so I decided to remove it. The removal seems to work for Eclipse 3.4 and 3.4.1. There is also script, that does the task, but unfortunately only for Linux and Cygwin.
Manual removal:
eclipse/configuration/config.ini
from a 3.3.2 version of the platform into this release and optionally replace the eclipse.buildId
eclipse/eclipse.ini
file with the contents from >em>Eclipse platform version 3.3.2.
[Update June 30 2009] Removing p2 from the Eclipse SDK is no longer supported in Galileo (3.5) or later. There is some cure - p2: how I install plugins in extension locations