> One issue with this approach is that m2eclipse will not use this
> settings.xml file (by default, as it has it's own embedded Maven). I
> guess
> this could be solved by configuring the standalone Maven installation in
> m2eclipse.

That is exactly what we do.

> 
> Anyone that has actually tried the approach of having a "corporate"
> settings.xml bundled with a custom Maven distro?

We do have a custom "corporate" maven distro that developers can checkout.  
However, we have a number of teams that are using different versions of maven 
so our "recommended" approach for the organization is to simply checkout the 
settings.xml file to whatever maven installation they want.

For example, I have been trying to stay on the "somewhat" cutting edge of maven 
releases and have downloaded and tried the beta version of maven 3. Other teams 
are using fairly old versions. Not all teams are the same so we found that a 
common Maven distro for all devs to be overkill.

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