Since quite a while my Google App Engine Development server keeps complaining that there is a new SDK version out there which I should utilize. Nice hint but actually I'm wondering why I need to care about this one as I'm using the SDK within the Eclipse plug-in which seems to be configured to check for update. But neither the Plug-in nor the Eclipse update manager found the new SDK.
Only solution so far it to download the current version of the SDK from download page, unpack it at convenient place to live and add it to the App Engine Plug-in in Eclipse (Navigate to Window-Preferences-Google-App-Engine and add it there - make sure that it is marked as default SDK).
Seems to be working pretty well and I'm looking forward to try the new features like Query Cursors which are indicated to come as part of the new release (release notes). Will keep you posted on this.