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With Compiler compliance level set to 1.4, and "Use default compliance settings" checked, my project has many instances of "Syntax error on token "assert", assert expected". The error message is non-informative. Moreover, it took me some time to discover a workaround: Uncheck "Use default compliance settings", and set the three subsequent pull-down combo boxes to be "1.4", "1.4", and "Error" respectively. Out-of-the-box, the grayed portions were displaying "1.2", "1.3", and "Warning".
These defaults match javac from JDK1.4.