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R.J. over at Coffee Bytes has developed a code folding plugin which overcomes some of the folding shortcomings in Eclipse. Here are the features the plugin adds:

  Collapsable Source file headers (how they missed this feature I do not know - it's the longest comment in the file!) 
  Control comment block and javadoc collapsing independently. 
  ALL Control structures are now collapsable. Yes, this means if, else, try, catch, while, for, named blocks, switches, and even static initializers. 
  Filter folding structures by # of lines. One of the things I noticed in building this plug-in was that when you add if/else/while/for etc as foldable regions, you get a WHOLE LOT of arrows. To counter that, you can specify the minimum # of lines a structure should have before it should become foldable.

One feature I really would like to see is folding regions in code like Visual Studio.Net. I would like to fold all getters and setters as a single block... Get the plugin here and have fun folding your code. ;-)