Hi John,
What version of the plugin are you currently using? We just released a new version of the plugin (1.0.1) a couple of days ago that may fix this problem. Here are the release notes:
http://code.google.com/eclipse/docs/release_notes.html
Although the problem that you're having is not explicitly mentioned in this list, I know that we had some issues with classpath computation for GWT Compiles.
See
http://code.google.com/eclipse/docs/updating_the_plugin.html for instructions on updating the plugin.
However, the problem that Alex mentioned above still exists. That is, if you have a GWT, App Engine, or GWT + App Engine project (call it project A), and that project depends on another project (call it project B), the classes for project B are not automatically copied into project A's war directory.
Now, suppose that project B only has GWT client source in it (no RPC) - then the new version of the plugin will handle this case - it will automatically pull the dependent project's source folders onto the classpath when compiling or running hosted mode.
If it is the case that project B is using GWT but defines RPC interfaces and RPC data objects (which seems to be your case), then you'll have a problem, because you'll need the class files from the RPC data objects in project A's war directory. So, to make your situation work, I think you'll have to go with the workaround of exporting a jar from project B, and adding a reference to it on project A's classpath.
Sorry about the inconvenience; we're planning on fixing this issue in the future.
Rajeev