I've added a picture of what the workbench should look like.
I can't find File -> Designer -> Palette Settings. Should this be on the toolbar?
Ah! you mean File -> Edit Project Properties -> Designer -> Palette Settings - Tried restore Defaults but it made no difference.
The problem seems to be workbench wide not just a project problem.

I've found the cause. I clicked on the x on the palette tab to close it and it leaves it in the state in image 1. I can't open it again to get it into the state of image 2 though I can still access the contents of the palette.


I found this entry in the .log file


!ENTRY org.eclipse.ui 4 0 2009-08-27 16:14:32.758
!MESSAGE Unhandled event loop exception
!STACK 0
java.lang.NullPointerException
    at org.talend.designer.core.ui.editor.palette.TalendPaletteContextMenuProvider.buildContextMenu(Unknown Source)
    at org.eclipse.gef.ContextMenuProvider.menuAboutToShow(Unknown Source)
    at org.eclipse.jface.action.MenuManager.fireAboutToShow(MenuManager.java:335)
    at org.eclipse.jface.action.MenuManager.handleAboutToShow(MenuManager.java:463)
    at org.eclipse.jface.action.MenuManager.access$1(MenuManager.java:459)
    at org.eclipse.jface.action.MenuManager$2.menuShown(MenuManager.java:485)
    at org.eclipse.swt.widgets.TypedListener.handleEvent(TypedListener.java:235)
    at org.eclipse.swt.widgets.EventTable.sendEvent(EventTable.java:84)
    at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1003)
    at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1027)
    at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1008)
    at org.eclipse.swt.widgets.Control.WM_INITMENUPOPUP(Control.java:4111)
    at org.eclipse.swt.widgets.Control.windowProc(Control.java:3815)
    at org.eclipse.swt.widgets.Canvas.windowProc(Canvas.java:337)
    at org.eclipse.swt.widgets.Decorations.windowProc(Decorations.java:1565)
    at org.eclipse.swt.widgets.Shell.windowProc(Shell.java:1937)
    at org.eclipse.swt.widgets.Display.windowProc(Display.java:4528)
    at org.eclipse.swt.internal.win32.OS.TrackPopupMenu(Native Method)
    at org.eclipse.swt.widgets.Menu._setVisible(Menu.java:250)
    at org.eclipse.swt.widgets.Display.runPopups(Display.java:3849)
    at org.eclipse.swt.widgets.Display.readAndDispatch(Display.java:3416)
    at org.eclipse.ui.internal.Workbench.runEventLoop(Workbench.java:2382)
    at org.eclipse.ui.internal.Workbench.runUI(Workbench.java:2346)
    at org.eclipse.ui.internal.Workbench.access$4(Workbench.java:2198)
    at org.eclipse.ui.internal.Workbench$5.run(Workbench.java:493)
    at org.eclipse.core.databinding.observable.Realm.runWithDefault(Realm.java:288)
    at org.eclipse.ui.internal.Workbench.createAndRunWorkbench(Workbench.java:488)
    at org.eclipse.ui.PlatformUI.createAndRunWorkbench(PlatformUI.java:149)
    at org.talend.rcp.intro.Application.start(Unknown Source)
    at org.eclipse.equinox.internal.app.EclipseAppHandle.run(EclipseAppHandle.java:193)
    at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.runApplication(EclipseAppLauncher.java:110)
    at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.start(EclipseAppLauncher.java:79)
    at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:382)
    at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:179)
    at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
    at sun.reflect.NativeMethodAccessorImpl.invoke(Unknown Source)
    at sun.reflect.DelegatingMethodAccessorImpl.invoke(Unknown Source)
    at java.lang.reflect.Method.invoke(Unknown Source)
    at org.eclipse.equinox.launcher.Main.invokeFramework(Main.java:549)
    at org.eclipse.equinox.launcher.Main.basicRun(Main.java:504)
    at org.eclipse.equinox.launcher.Main.run(Main.java:1236)

TIS3.1.3
I've lost the tab for palette in design studio and can't seem to get it back. Anyone got any ideas?

I don't seem to be able to upload a screen shot for this. Ah! got it now.