I copied these steps from: http://assertselenium.com/2012/10/28/how-to-setup-a-webdriver-project-in... just in case that article dissappears (not to claim credit). The article was originally written by:
Posted by: assertselenium // eclipse, Selenium, WebDriver // selenium eclipse, Selenium setup, WebDriver, WebDriver project // October 28, 2012
Steps To Create a Selenium Project in Eclipse
Step 1: Download Eclipse
Step 2: Creating a New Java Project in Eclipse IDE
Step 3: Enter a Project Name E.g:SampleDemo
Step 4: Creating a New Package
Right Click on the New Java Project created → New→ Package
Step 5: Type In a New Package Name E.g:com.selenium.example
Step 6: Creating a New Java Class file.
Right Click on the Newly created Package → New → Class
Step 7:Type In a Name for your Java Class file,
click on the check box for “public static void main (String args)”
Click on Finish
Step 8: The Java class file is created and ready for Java Scripting.
Now, We need to add the Selenium Library files to our project
Step 9: Download the selenium server from the seleniumhq.org website.
Step 10: Click on Downloads Tab and then click on the link as highlighted in the screenshot
Step 11: Save the jar file in a specific Location E.g C:/Selenium
Step 12: Configuring Build Path.
Right Click on the package → Build Path → Configure Build Path
Step 13: Click on Libraries tab → Add External Jar’s
Step 14: The jar files should be loaded from the C:/Selenium folder (or where you have saved the downloaded Jar file from Seleniumhq website) to our Eclipse Workspace and should look as in the screenshot
Step 15:We can also verify by expanding the Referenced Libraries in the Project Explorer that, whether the Jar file is added properly
Step 16: Now, our Eclipse is ready for Selenium Scripting
Web Driver object initialization as WebDriver driver=new FirefoxDriver();
As in the below Screenshot
Step 17: Mouse Hover near the WebDriver error line you will see an Auto suggest Option, you will find Import WebDriver.
Click on Import WebDriver –Now the error will be vanished.
Step 18: Now Mouse Hover near the Firefox Driver, and you will get an autosuggest option.
Click on the Import FirefoxDriver option the suggested list