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I'm using your last stable build (20020321), and compilation fails with "Cannot resolve javax.net". I'm using the latest JDK 1.4.0 from Sun, and I've set all Eclipse properties (that I'm aware off) to accept 1.4 features. The same source compiles using the javac compiler directly.
Moving to JDT/Core for comment on classpaths/variables.
javax.net is no longer part of rt.jar in jdk1.4, it is part of jsse.jar. Currently you need to add the latter JAR on your classpath explicitly (through a variable is preferrable). In the near future, we plan to support better fragmented JDKs.
Closing