create another portlet as follows:
right click -> New -> Liferay JSF Portlet
Display Name: Parts Portlet
Title: Parts Portlet
Portlet Modes: check "Edit"
View Template: Liferay Faces Alloy
the edit.xhtml file generated should look almost identical to the view.xhtml file generated by the new Liferay Plugin Project wizard. Maybe it should say "in edit mode" instead of "in view mode", but otherwise they should be identical.
The generated edit.xhtml file for the edit mode view is invalid xhtml.
The incorrect portlet edit.xhtml is missing some tags and closing tags, and looks like this:
The correct edit.xhtml should look like the output when generating using new Liferay Plugin Project, something like this: