Simple serial output code works in Arduino IDE, but generates garbage in Eclipse

When I compile simple serial test code below in Arduino IDE (0022) on My Ubuntu 10.04, it then produced expected results ("Looping" text) in both Serial Monitor and through screen /dev/ttyUSB0 9600.

However, when I compile the same code (a bit modified for Eclipse, e.g. main() is added) through Eclipse IDE, my Arduino Pro generates garbage.

I tried all the troubleshooting suggestions with stty, etc but it seems the problem is in Eclipse/AVRDude settings? Does anybody know how to fix this problem?

void setup() {
Serial.begin(9600);
}

void loop() {
Serial.println("Looping");
delay(100);
}