Code obfuscation using Eclipse IDE in Android

Provide me the steps to obfuscate an Android application from Eclipse IDE. Is Proguard.jar best for this obfuscation purpose or do we have better obfuscator?

How does obfuscation work Android?

Code Obfuscation is the process of modifying an executable so that it is no longer useful to a hacker but remains fully functional. While the process may modify actual method instructions or metadata, it does not alter the output of the program. On some platforms (such as Java, Android, iOS and .

Just in the last couple days, they've given instructions on how to do this in the Android Developers Blog