stacey11,
Decorations are shown in package explorer after following this user guide in MyEclipse 10.6 : http://wiki.eclipse.org/EGit/User_Guide
Please check the above GIT user guide for more information about decorations,etc. and let us know how it works for you.
If you still replicate the issue, please give us some more details to help us investigate further :
1) Open MyEclipse IDE, from menu options click on MyEclipse > Installation Summary > Installation Details and copy and paste the same here.
2) Can you please clarify how did you install EGIT and JGIT ?
2) Please attach the screenshot of the package explorer to help us investigate further.