Here is the oh so simple solution from the MyEclipse forums:
Can you switch to the navigator view, right-click refresh the project, make sure it's not in the LIB dir,
then try and drag and drop the JAR into the lib dir and see if it shows up.
All I had to do was refresh the project! How many times have we forgotten a simple step and made the solution so complex?
Thanks to everyone who took a look at this.