I have the exact same problem on the following configuration:
Windows 7 Professional (64-bit)
Eclipse JEE 3.7.1 (Indigo) (64-bit)
JBoss Tools 3.3.0 M3 (also tried the nightly builds)
I haven't found the solution yet. On the one hand, you can use JAR and give it a ".war" extension. There's really no fundamental difference between the two. On the other hand, I don't know what functionality I'm missing because I haven't gotten to try the WAR option to see what it does.
These menu items were removed during work for https://issues.jboss.org/browse/JBIDE-9009
The issue was initialization of some core underlying libraries during the convenience action. Unfortunately, after lots of investigation, the root causes were never discovered and the only solution was to remove the actions entirely, or, leave them in and allow some users to have broken projects or workspaces throwing errors everywhere.
The decision was made to remove them.
The "workaround", or, the new way to do it, is to simply use the .jar archive feature, and build out the structure you wish to see.
The convenience actions really were not as useful as we would have liked to begin with. Project archives is, typically, used for non WTP-style projects. Because of this, we really have no way at all to predict how the users project is structured. We did some simple guess-and-verify work, but it was often wrong. Users often found the guesses counterproductive, as they then had to go remove invalid filesets, and add in new ones themselves. Combining this with the initialization errors in JBIDE-9009, and it was not a difficult decision to remove the conveineice actions.
Please look at http://community.jboss.org/wiki/CreateGWTProjectsWithJBossToolsAndEclipseWTP as the proper way of using Eclipse with GWT in a portable fashion.
I've updated the original article to point to this more new article.
Thanks, Rob. I found that very helpful. It's good to know that it's not just my machine.
A series of bizarre Eclipse & JBoss bugs made me consider switching to the Project Archives approach, but the "Add and Remove..." option in the Servers view is working again, so I'll stick with that.