In this post I'll pull together a flavour of what has changed since that first alpha - and perhaps when you see the kinds of issues that have been reported, it may give you the confidence to give it a try!
Back level groovyc
The most serious issue that arose was simply that we were based on an old development driver of groovy 1.7. It was a couple of months out of date, and the jars built at that time were incomplete. This is now remedied and the compiler has been rebased on the recently released official groovy 1.7 beta 1.
Generics checking of groovy code
Some of you have been playing with this feature more than I anticipated. It quickly became apparent that there was a need to support @SuppressWarnings so that users could hide warnings if they didn't want to mess around trying to correctly specify generic constraints. It now works:

(*cough* Just pretend you didn't see the final 's' in SuppressWarnings that isn't highlighted correctly...)
Coping with bad code
When any parser is integrated into an IDE for some filetype, and that IDE supports features like early error indication (as you type), that parser needs to be really robust. In Eclipse full compiles kick off for the code in the editor any time the user stops typing for even a moment - and not just when they Ctrl+S to save. This means the parser and compiler are often being asked to process incomplete/unfinished code. We are actively fixing issues where incomplete code crashes the groovy compiler.
JUnit
Based on a requirement from the Spock test framework we now have support for a monospace font in the JUnit failure trace view. This is surprisingly useful (even when not using Spock) and I now run with it as my default mode for JUnit. This shot shows the aligned output in the failure window (click to zoom):

The option to set the font is under Window>Preferences>Groovy
Error positions
The Eclipse Java support is great at positioning the 'squigglies' at just the right location to indicate where the problem is in your code. As any alpha users will have noticed, things aren't so great for groovy code. We are working to fix these situations.
Here is the 'before' shot taken on the first alpha (don't laugh):

We always report the errors, we were just having a few issues with properly locating them in the editor:
- the error that Gravy doesn't implement Comparable is recorded against the annotation
- the warning about Stack is not quite underlining the whole word
- the error about violated generic bounds is one character to the left of where it should be
(admittedly this was taken on Windows which I think was worse than mac/linux)
And now with recent fixes:

(there's that problem with the 's' in SuppressWarnings again...)
AST Transforms
The alpha had very basic support for AST Transforms. By specifying the jar containing the transform in the groovy.properties file in the root of the project, it would be picked up and any transforms within available during the project build. However, already we have seen cases where basic transforms (for example those triggered by @Entity) require much more than a single jar. For now we are still making AST transform support 'opt-in' but if you specify this particular entry in the groovy.properties file:
org.eclipse.jdt.core.compiler.groovy.groovyClassLoaderPath=%projclasspath%
Then the classloader responsible for loading AST transforms and their dependencies will run with the same classpath as the project. This will be the default behaviour before release (I think) but for now it is a helpful way for us to work out if transforms are involved in particular bugs that we get in.
Boring compiler internal bugs
I'm afraid I don't have any fancy screenshots here, and these are the bugs that can take a lot of effort to fix. We've had some great jira issues raised by people really mixing it up with groovy/java generic types extended/implemented via other groovy/java types. The basics are behaving pretty well and really it is only when users stray out into generics, covariance, etc that the compiler starts to misbehave. However, we can only fix bugs we know about so if you are having a problem, please let us know ! I am aware that some grails users are having issues with their projects but I can't seem to recreate it locally - if you have a failing grails project and can share it with us, please do!
Finally, we are also running Continuous Integration now, so we can get those fixes out faster.This means you should regularly update and if you haven't installed at all yet, what are you waiting for?
Eclipse update site for Eclipse 3.5:
http://dist.codehaus.org/groovy/distributions/greclipse/snapshot/e3.5
Eclipse update site for Eclipse 3.4.2:
http://dist.codehaus.org/groovy/distributions/greclipse/snapshot/e3.4
(The 3.4 stream is a bit behind the 3.5 stream, but will receive periodic updates)
Raise any issues at the JIRA:
http://jira.codehaus.org/browse/GRECLIPSE

