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If, while working with GWT hosted mode, the browser just hangs while loading the application, check the server logs for the following error:

org.mortbay.jetty.HttpException: null
       at org.mortbay.jetty.HttpParser.parseNext(
       at org.mortbay.jetty.HttpParser.parseAvailable(
       at org.mortbay.jetty.HttpConnection.handle(
       at org.mortbay.thread.QueuedThreadPool$

The solution is to rename your ~/.mozilla/eclipse/ directory, then it should work fine.