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Cannot find a solution satisfying the following requirements org.eclipse.ltk.core.refactoring [3.4.2.r342_v20081028-0800].
In the Eclipse update dialog did you choose the correct version of m2eclipse that works with 3.4.2? The m2eclipse versions are typically tied to the version of Eclipse, so 0.9.8 might not be the right one (I don't have a copy of Eclipse 3.4.2 to check, but for Eclipse 3.5 the m2eclipse version is 0.9.9, so you probably have the correct one).
The other possibility is that you select one of the m2eclipse software options that has some requirement. Exactly which items did you select in the Available Software dialog?