Deploying java app locally - JXSAXParserFactory not found

[Ambiency]

I have added a number of app to my dev environment and updated
eclipse. I now see the following error when trying to run an app
locally ('Run As .... (Google) Web Application):

Dec 27, 2009 9:50:57 AM com.google.apphosting.utils.jetty.JettyLogger
warn
WARNING: failed
com.google.apphosting.utils.jetty.DevAppEngineWebAppContext@bb8694{/,/
Users/fred/dev/project/demo1/fred/war}
javax.xml.parsers.FactoryConfigurationError: Provider
oracle.xml.jaxp.JXSAXParserFactory not found
at javax.xml.parsers.SAXParserFactory.newInstance
(SAXParserFactory.java:113)
at org.mortbay.xml.XmlParser.<init>(XmlParser.java:69)
at org.mortbay.jetty.webapp.WebXmlConfiguration.webXmlParser
(WebXmlConfiguration.java:83)
at org.mortbay.jetty.webapp.WebXmlConfiguration.<init>
(WebXmlConfiguration.java:78)
at sun.reflect.NativeConstructorAccessorImpl.newInstance0(Native
Method)
at sun.reflect.NativeConstructorAccessorImpl.newInstance
(NativeConstructorAccessorImpl.java:39)
at sun.reflect.DelegatingConstructorAccessorImpl.newInstance
(DelegatingConstructorAccessorImpl.java:27)
at java.lang.reflect.Constructor.newInstance(Constructor.java:501)
at java.lang.Class.newInstance0(Class.java:350)
at java.lang.Class.newInstance(Class.java:303)
at org.mortbay.jetty.webapp.WebAppContext.loadConfigurations
(WebAppContext.java:838)
at org.mortbay.jetty.webapp.WebAppContext.doStart(WebAppContext.java:
417)
at org.mortbay.component.AbstractLifeCycle.start
(AbstractLifeCycle.java:40)
at org.mortbay.jetty.handler.HandlerWrapper.doStart
(HandlerWrapper.java:117)
at org.mortbay.component.AbstractLifeCycle.start
(AbstractLifeCycle.java:40)
at org.mortbay.jetty.handler.HandlerWrapper.doStart
(HandlerWrapper.java:117)
at org.mortbay.jetty.Server.doStart(Server.java:217)
at org.mortbay.component.AbstractLifeCycle.start
(AbstractLifeCycle.java:40)
at
com.google.appengine.tools.development.JettyContainerService.startContainer
(JettyContainerService.java:188)
at
com.google.appengine.tools.development.AbstractContainerService.startup
(AbstractContainerService.java:120)
at com.google.appengine.tools.development.DevAppServerImpl.start
(DevAppServerImpl.java:217)
at com.google.appengine.tools.development.DevAppServerMain
$StartAction.apply(DevAppServerMain.java:162)
at com.google.appengine.tools.util.Parser$ParseResult.applyArgs
(Parser.java:48)
at com.google.appengine.tools.development.DevAppServerMain.<init>
(DevAppServerMain.java:113)
at com.google.appengine.tools.development.DevAppServerMain.main
(DevAppServerMain.java:89)
Dec 27, 2009 9:50:57 AM com.google.apphosting.utils.jetty.JettyLogger
warn
WARNING: Nested in javax.xml.parsers.FactoryConfigurationError:
Provider oracle.xml.jaxp.JXSAXParserFactory not found:
java.lang.ClassNotFoundException: oracle/xml/jaxp/JXSAXParserFactory

I have removed all likely looking 'stray' jar file and still the
problem remains. This same set up work on my mac book with no
problems.

Regards

Kevin