g000026,
Sorry for the inconvenience caused.
The only workaround is to delete/rename the XFire folder(com.genuitec.eclipse.ws.xfire_11.5.0.me201311050147) under <MyEclipse installation directory>/plugins, restart MyEclipse, deploy the app to MyEclipse Tomcat 7 and then see if the issue persists.
Let us know how it works for you.