Are you using a different version of Eclipse? Try opening the transfers tab before you update and seeing if it's blocking on something like downloading content.jar. If so, the problem is that the repository only supports classic update sites, while Eclipse is only using p2.
As to solving it... I noticed this wasn't working on very recent builds of Eclipse. According to docs, classic is still supposed to be supported. I don't know if this is a change in behavior or a bug. Workarounds would probably be using an older Eclipse, switching to classic updates in Preferences, General/Capabilities, or possibly placing the plugin's zip in the eclipse dropins folder (eclipse/dropins).
I haven't tried these, but the Preferences seems most likely.
I'm using Eclipse 3.7 build I20110526-1708.
Edited
Yeah, you can tell that it's a p2 problem: http://cbes.javaforge.com/update/content.jar is a 404, while http://cbes.javaforge.com/update/site.xml works fine. site.xml is the classic update mechanism.
According to the wiki:
However, users will rarely have a need for enabling Update Manager, because p2 is able to install from any update site that was designed for Update Manager.
I just tried this out myself, and can verify the Capabilites workaround works: After enabling it, go to Help>Software Updates>Find and Install. Click Search for new Features to install, and add your site as a remote site.
It should successfully find the provided features.
As listed on the wiki, this is a workaround, and shouldn't normally be used. I'm not sure why it's necessary; I couldn't find information about it myself.
As for the dropins dir, I made a mistake: it should be a jar file, not a zip. The plugin's jar, which can be found by looking through the site.xml file. This is probably a worse workaround than the first, though.