Get Internal build error on new Mobile Air App Project

When I create a new Flex Mobile project in Flash builder with all default options selected I get an internal build error.

When I look at the logs I get:

Uncaught exception in compiler

java.lang.IllegalArgumentException: Comparison method violates its general contract!
at java.util.TimSort.mergeHi(Unknown Source)
at java.util.TimSort.mergeAt(Unknown Source)
at java.util.TimSort.mergeCollapse(Unknown Source)
at java.util.TimSort.sort(Unknown Source)
at java.util.TimSort.sort(Unknown Source)
at java.util.Arrays.sort(Unknown Source)
at flex2.compiler.swc.SwcGroup.updateMaps(SwcGroup.java:281)
at flex2.compiler.swc.SwcGroup.<init>(SwcGroup.java:82)
at flex2.compiler.swc.SwcCache.getSwcGroup(SwcCache.java:137)
at flex2.compiler.CompilerSwcContext.load(CompilerSwcContext.java:145)
at flex2.tools.oem.Application.recompile(Application.java:1170)
at flex2.tools.oem.Application.compile(Application.java:894)
at flex2.tools.flexbuilder.BuilderApplication.compile(BuilderApplication.java:367)
at com.adobe.flexbuilder.multisdk.compiler.internal.ASApplicationBuilder$MyBuilder.mybuild(ASApplicationBuilder.java:319)
at com.adobe.flexbuilder.multisdk.compiler.internal.ASApplicationBuilder.build(ASApplicationBuilder.java:129)
at com.adobe.flexbuilder.multisdk.compiler.internal.ASBuilder.build(ASBuilder.java:198)
at com.adobe.flexbuilder.multisdk.compiler.internal.ASItemBuilder.build(ASItemBuilder.java:70)
at com.adobe.flexbuilder.project.compiler.internal.FlexProjectBuilder.buildItem(FlexProjectBuilder.java:607)
at com.adobe.flexbuilder.project.compiler.internal.FlexProjectBuilder.build(FlexProjectBuilder.java:382)
at com.adobe.flexbuilder.project.compiler.internal.FlexIncrementalBuilder.build(FlexIncrementalBuilder.java:187)
at org.eclipse.core.internal.events.BuildManager$2.run(BuildManager.java:629)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:42)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:172)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:203)
at org.eclipse.core.internal.events.BuildManager$1.run(BuildManager.java:255)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:42)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:258)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:220)
at org.eclipse.core.internal.events.BuildManager.build(BuildManager.java:362)
at org.eclipse.core.internal.resources.Project$1.run(Project.java:545)
at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:1975)
at org.eclipse.core.internal.resources.Project.internalBuild(Project.java:524)
at org.eclipse.core.internal.resources.Project.build(Project.java:115)
at org.eclipse.ui.actions.BuildAction.invokeOperation(BuildAction.java:222)
at org.eclipse.ui.actions.WorkspaceAction.execute(WorkspaceAction.java:162)
at org.eclipse.ui.actions.WorkspaceAction$2.runInWorkspace(WorkspaceAction.java:483)
at org.eclipse.core.internal.resources.InternalWorkspaceJob.run(InternalWorkspaceJob.java:38)
at org.eclipse.core.internal.jobs.Worker.run(Worker.java:54)

eclipse.buildId=M20100909-0800
java.version=1.7.0_05
java.vendor=Oracle Corporation
BootLoader constants: OS=win32, ARCH=x86, WS=win32, NL=en_GB
Command-line arguments: -os win32 -ws win32 -arch x86

This is a continuation of log file C:\Users\Giles Roadnight\workspace\.metadata\.bak_1.log
Created Time: 2013-02-03 11:11:13.045