Following articles and mailing list threads did help
(1) http://wiki.apache.org/db-derby/BuildingDerby



Right now I am still not able to build within eclipse. I just use the
command prompt to run 'ant all'.
It works fine for me in Eclipse (on Linux) using the directions in (1). What kind of errors do you get?
 
Did you set up the ant.properties? I think I had to do that to make it work, but if it works with ant all it
should probably work in Eclipse as well..