Greetings,
Thanks Alex and Daniel for such a detailed explanation of setup.
@Alex: I had set variable this very process. And append variables to native
environments are selected.

@Daniel: I am running 'make eclipse-project' in terminal first before
importing package in eclipse. This creates eclipse project related files for
package. I have been doing equivalent to this script given by you. I had set
ROS environment variables in .bashrc .
Environment variables were visible if I go to project properties ->C/C++
Make Project->environment tab. 
But somehow environment variable are not automatically getting populated in
Run configuration and Debug configurations. This is whhere manual feeding is
needed! This I had checked for other packages as well. Is this odd??

Build and clean works well for project. I hope current setup is standard. 
Thank you
Nitin


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