You create a java project only with the shared files (NOT a GAE project). You DON'T copy any libraries into the lib folder. You should add the required third-party components into your main project. Then you rightclick on the shared project's *source* folder, go to "Build Path -> Remove from build path" item in the context menu. You may, by the way, rename the source folder, so that it has a name different from the default source folder name. Next you rightclick on the main project's folder, go to "Build Path -> Link source".