Package Explorer in Eclipse stuck in resources

Question

At work we are using Eclipse Java EE Indigo Service Release 2 (build id: 20120216-1857) and I'm having some difficulty with my package explorer. It seems like it's drilled into a mysterious "resources" directory and I cannot do anything to get out of it and see my packages. I've had to switch to using Project Explorer for some time but I just prefer Package Explorer. Can anyone assist with this? I've included an image:

I've attempted to link with Editor, reset perspectives, close and re-open perspectives, but nothing changes. I haven't tried re-installing but I'd really like to avoid having to do this.

Any suggestions?