I too wasn't aware of how to do this..
But i tried this way and it worked..
Step 1: Try to create new workspace with the name and location as you wish
Step 2: click new->Java Project
Step3: In the create a Java Project Window select the option for Creating from existing Resource" and select the resource you want
Step4: You can see the project name as automatically set by itself based on the folder containing the project that you select.
Step5: click finish
Step 6: I guess, you need to open Navigator view(Window->show view-> navigator) for best viewing
Hope this works gud.. Post here if its not working,..