From http://drupal.org/node/75242:
You should only need to set these if you are use Windows. These settings ensure that if you upload files to Drupal.org, or create patches to upload they are in the standardized format (UTF-8, Unix line endings, and CVS -kkv mode).
Make the following changes under Window - Preferences:
#1 Expand the left-hand menu to General - Workspace
* Set Text file encoding to UTF-8.
* Set New text file line delimiter to Unix
#2 Expand the left-hand menu to Team - CVS
* Click on the Files and Folders tab.
* Set the Default text mode dropdown to ASCII with keyword expansion (-kkv).
* Disable the Convert text files to use platform line ending checkbox.