Download EasyEclipse from http://www.easyeclipse.org/site/distributions/index.html
Install the application easyeclipse-ruby-rails-1.2.2.2.exe
Launch the EasyEclipse Application
Create new Rails Project: File > New > Rails Project
Provide a name for the Project
The EasyEclipse fails to create actual Rails project as its using older syntax in case if you have Rails of latest version.
To create actual Rails Project: Goto Rails command prompt > command: rails new <projectname>
<
p>Since then your EasyEclipse will start fetching actual rails project files and manages them.