GWT intention error, but build works

Using the ImageViewer code in a struts application, I'm getting errors in the code editor for all of the GWT classes.

For example, on "extends Image", the error is
"Class com.google.gwt.user.client.ui.Image" is not presented in the JRE Emulation Library so it cannot be used in client code"

This code is under src/client, and src is listed as a souce content root. gwt-servlet and gwt-user are being deployed. My GWT config is set to the 1.2.2 directory. My ImageViewer.gwt.xml file is under src.

This code compiles and runs under JBoss except for an issue I'm troubleshooting that does not show the larger image.

Is this a GWT plugin issue or something to do with my configuration?