Currently there seems to be a problem with the AJDT 2.0 update site for Eclipse 3.5 “Galileo”. If you set the URL to http://ftp-stud.fht-esslingen.de/pub/Mirrors/eclipse/tools/ajdt/35/dev/update everything works fine.
Problems with Eclipse AJDT update site
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All problems with the 3.5 update site are believed to be fixed now.
OK, in this case you can use the official update site at http://download.eclipse.org/tools/ajdt/35/update/