mukund,
You can definately have multiple versions of Eclipse and MyEclipse, many people like to do this to have Eclipse 2.1.x for stable development and Eclipse 3.0 M-builds for testing.
A very popular directory structure for this type of thing is something like this:
C:\eclipse\2.1.3
C:\eclipse\3.0m8
You’ll note that when you unzip the SDK Zip files from Eclipse, it creates a directory called “eclipse”, typically you rename this directory to the version, and drop it in your C:\eclipse dir, which will give you the above organization.
You will want to do something almost identical with MyEclipse:
C:\myeclipse\2.7.1
C:\myeclipse\3.7.2
And then when you run the MyEclipse installers, and they ask for your respective version of Eclipse, you point them to the appropriate install (e.g. C:\eclipse\2.1.3) and then when the installer asks for a location, point it at the dir you made (or let the installer make it) (e.g. C:\myeclipse\2.7.1)
2. – What is the difference between 2.1.X versions and 3.0Mx versions
There is no better way to answer that then to have you read/view every single “New and Noteworthy” set of pages for every M-build release of Eclipse 3.
This is a link to the M9 build notes, at the bottom are links to ALL previous M-build notes. You can look at all of them for screenshots and quick blurbs about the new features.
http://download2.eclipse.org/downloads/drops/S-3.0M9-200405211200/eclipse-news-M9.html
If you don’t want to read all of it, then my summary would be something like: The difference, technically and usability-wise, between Eclipse 2.1 and Eclipse 3.0 is probably the same gap of difference between Windows 98 and Windows XP. Its a pretty huge difference. Eclipse 3.0 seems to be oozing cool enhancements, functionalities and producitivty enhancements. It will be a very slick release.