Let me know if I am asking this in wrong forum and will move it. I have posted same question on mulesoft forum as well but no reply so far.
I installed Mule ESB Community edition on Ubuntu 11.04 (unzipped MuleStudio-CE-for-Linux-32bit_20120120.zip). It created MuleStudio folder. I have multiple JDK installed on on my machine. In terminal window I exported JDK home:
export JAVA_HOME=/opt/java/jdk1.6.0_31
started mule studio (inside MuleStudio folder):
./muleStudio
It opens MuleStudio but it looks like plain eclipse. I do not see option to "create a new Mule Project" (see attachment).
This is fixed now...but I am not deleting the question so that it may help someone else.
Basically although I was exporting JAVA_HOME explicitly but Mule somehow was taking default JAVA_HOME location defined in my .bashrc (which was pointing to jkd1.5).