does it work with other versions of AS or is it 5.1.GA specfific ?
Did not try earlier versions ;)
Ultimately - i moved passed by startiing with standard, and ripping out stuff. I have not troubleshot what exactly the diff is between my custom web, and the 5.1 provided web.
I'm having the same problem with 4.2.3GA when I try to start it in eclipse. I can see in the console that the server has started.