Unable to run CF8 from CFEclipse

I have cfeclipse installed as well as CF8 dev. edition running. When I create a .cfm page and try to run it from inside cfeclipse (rt. click on file, run as, and then use internal web server), the page does not display any cfoutput. I tried outputting the date/time but the function itself displays like so: #Now()#. I checked to make sure the cf services are all running and they are. What am I missing and what do I do to fix it?

roger