Eclipse blocks on commit. Python script loops.

Is there no solution or work around for this issue other then using the command line bzr utility?

It looks like you are the first person who reported such an issue. Before the commit dialog is shown we issue 2 xmlstatus commands. You can try to them from the command line and see if they succeed.
E.g.
Let's say you select a file named 'f1' in project named 'p1' located at /workspace/p1/f1 folder and select Commit in Eclipse. This will execute the following:
bzr xmlstatus /workspace/p
bzr xmlstatus /workspace/p/f1

Both commands work as expected and fast.

Some other Team commands are without any action.
Maybe you should check this with Eclipse Kepler, BZR 2.6.0 and BzrEclipse plugin.
I tried several clean installations and managed only just one time the appearance of the commit popup...

The problem is that I have tested bzr-eclipse together with Eclipse Kepler and bzr 2.6 under both Ubuntu Linux and Windows 7. In both cases everything works fine. It might be a problem related to running this particular configuration on Mac. What about other commands like Annotate or running diff with some older versions? Do they work correctly? Would you also please test it with Eclipse Juno or Indigo? I will be grateful for any help as I cannot reproduce it.

It was OK with Juno under OS X 10.8, Mountain Lion.
After updating to OS X 10.9, Mavericks, the commit did hang also with Juno.

I tried to use all newer versions as I wrote before, but no luck.
Under OS X 10.9 I had to patch the bzr script on line #1 to force using Python 2.6 instead of the default 2.7.

I am not sure why you had to force bzr to use Python 2.6, it seems to work fine with 2.7 on Linux.
You could run some tests from bzr-java-lib just to make sure that bzr together with xmloutput plugin and Java client behave properly. Unfortunately, I have no access to a Mac at the moment and I am unable to reproduce the issue.

Additionally when commit dialog hangs in Eclipse you can take a look at bzr log file (~/.bzr.log) and attach the related excerpt to this ticket.

Here is the info on how to run the test suite from bzr-java-lib

bzr branch lp:bzr-java-lib
cd bzr-java-lib
mvn test

All the tests should pass.

Without the patch in the bar script I get an error message:

bzr: ERROR: Couldn't import bzrlib and dependencies.
Please check the directory containing bzrlib is on your PYTHONPATH.

Traceback (most recent call last):
  File "/usr/bin/bzr", line 74, in <module>
    import bzrlib
ImportError: No module named bzrlib

Does the issue affect any project or just one?
Please test with lp:bzr-java-lib or lp:bzr-xmloutput for instance.

Would also try bzr-eclipse 1.2 and see if the issue is reproducible?
The 1.2 release can be found here:
http://bzreclipse.org/jenkins/job/bzr-eclipse-1.2/18/artifact/org.vcs.bazaar.eclipse.site/target/site/

Issues with Eclipse and the Bzr-Plugin are also with older version of both programs.
In older versions I had to kill -9 the bazaar ssh process to unblock Eclipse and to save my work.

I do not have much free time so I moved the Rocrail sources to https://github.com/rocrail/Rocrail.git
The Git plugin is very good and covers my needs.

I'm sorry I cannot test any further.
You may close this bug report but that won't cure it. ;)