I'm not able to use the team menu item to apply patches that were generated by gendiff. The problem is that gendiff references a source file that doesn't exactly exist in the source tree. When using gendiff, you copy the original source file(s) to the same name but with a different extension, foo -> foo.jk. Then you modify the original file, and then you'd call 'gendiff path/ .jk' and it will diff all the files that end with '.jk' against the original file names to generate a patch. The patch winds up referencing that source '.jk' file and comparing it to the actual file in your project space. Eclipse balks on this because it can't find the source file. Patch will happily apply it.
I filed this upstream as: https://bugs.eclipse.org/bugs/show_bug.cgi?id=235692