>=virtual/jdk-1.5 not a good idea right now, because it produces: emerge: there are no ebuilds to satisfy ">=dev-java/blackdown-jdk-1.5". (dependency required by "dev-util/eclipse-sdk-3.2" [ebuild]) when sun isn't your jdk :) (do i really need to give emerge info? I mean, we're talking about virtual dep satisfaction here)
You have hit the problem of having stale PROVIDE files around from old style virtuals. When updating to the new system (Generation 2) you should have followed: http://www.gentoo.org/proj/en/java/java-upgrade.xml I guess we are not reaching the user base well enough. I wish GLEP 42 was already implemented. To get this fixed run java-check-environment and do as it says.