sources and deliverables directories.deliverables directory.deliverables/libraries directory:
Click
Window > Open Perspective > Other... > Java
to change to the Java perspective.
Click
File > New > Other... > Java Project
to open the New Java Project wizard.
Type "Product" in the Project name field. Click Next.

On the next page, Type "Product/deliverables" in Default output folder field.
Select "Product1" source folder.
Click Link Additional Source to Project button
in view bar.

In Link Additional Source click Browse.... and choose the D:\Product\sources directory.

Click OK to close the dialog.
Click OK in confirmation dialog to remove the project as source folder.

Repeat previous steps to create source folder "deliverables" linked to D:\Product\deliverables directory.
Click Finish.

Edit project "Product1"properties and select Java Builder Path page.
Expand "Product/deliverables", select Excluded and click Edit....

Click Add... in Exclusion patterns part of the Inclusion and Exclusion Patterns dialog.

Type "libraries/" in Add Exclusion Pattern dialog and click OK to validate and close the dialog.

Click OK twice to close dialogs.
Your project source setup now looks as follows:

Select Libraries tab.
Click on Add JARs....

Expand "Product" hierarchy to select jar files in "libraries" directory
Click OK.


Working with build paths
Creating a new Java project
Creating a Java project with source folders
Creating a new source folder
Using the Package Explorer