Source not found might be legitimate for dynamically loaded code (e.g. Maven).
There are three workarounds known to me (after months of search):
Connect to a running JVM with the debugger and you will see the code.
Use Dynamic Source Lookup plugin for Eclipse from here:
https://github.com/ifedorenko/com.ifedorenko.m2e.sourcelookup
Use run-jetty-run Maven plugin
http://code.google.com/p/run-jetty-run/
I prefer and recommend 3. It works and starts webapp much faster than jetty:run.
Unfortunately 2. didn't helped me as it has issues with Windows paths with spaces.
I have filled an enhancement request on Eclipse Bugzilla and if you agree this issue "Source not found" should vanish forever, please vote for it here:
from http://stackoverflow.com/questions/9474981/java-debugging-source-not-found/11452410#1145241