I am trying to get started with Maven and m2eclipse but I keep getting missing artifact errors:

log4j is in my local repository. I have m2eclipse set up to use an external installation of Maven although I realize that for dependency resolution it uses the embedded maven. I don’t have any custom settings for maven set up, this is a plain install of m2eclipse and maven. I am able to add the dependencies I want through m2eclipse (such as log4j) and it adds them to my pom file. I am at home and not behind a corporate or particularly restrictive firewall.
Can anybody help me figure out what is going on?
Pom file:
<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
<modelVersion>4.0.0</modelVersion>
<groupId>org.xonatype.mavenbook.ch04</groupId>
<artifactId>simple-weather</artifactId>
<version>1.0</version>
<name>Simple Weather</name>
<dependencies>
<dependency>
<groupId>junit</groupId>
<artifactId>junit</artifactId>
<version>4.8.2</version>
<type>jar</type>
<scope>test</scope>
</dependency>
<dependency>
<groupId>log4j</groupId>
<artifactId>log4j</artifactId>
<version>1.2.16</version>
<type>bundle</type>
<scope>compile</scope>
</dependency>
<dependency>
<groupId>dom4j</groupId>
<artifactId>dom4j</artifactId>
<version>20040902.021138</version>
<type>jar</type>
<scope>compile</scope>
</dependency>
<dependency>
<groupId>jaxen</groupId>
<artifactId>jaxen</artifactId>
<version>1.1.1</version>
<type>jar</type>
<scope>compile</scope>
</dependency>
<dependency>
<groupId>velocity</groupId>
<artifactId>velocity</artifactId>
<version>1.5</version>
<type>pom</type>
<scope>compile</scope>
</dependency>
</dependencies>
<properties>
<project.build.sourceEncoding>UTF-8</project.build.sourceEncoding>
</properties>
</project>
change
<type>bundle</type>to<type>jar</type>