I'm often wary of creating multiple projects in Eclipse. Let's take a scenario:
This means the Hibernate project jar will need to be placed in the main project to test it, every time there is a change.
What are the disadvantages?
What are the advantages?
So now my question:
The more you can separate your projects, the better.
As soon as you can establish a clear dependency separation, move it out into its own project. As it grows, this will enable you to reuse code easier in other projects.
In your case, if you have different layers, it's avisable to put the layers in different projects. This gives a little extra motivation to keep the layers separat, talk through interfaces and avoid circualar dependencies between layers (projects can't depend on each other!)
I often introduce one specialized project that contains all libraries and resources for the entire application. Maybe another one that is only used to build and deploy the application (the ant/maven build scripts, the product definition in case of RCP applications). And finally, think about defining all test cases in separate projects. Test sometimes need special libraries and resource files (logger configs, database dumps with test data) and those files shouldn't mix up with the applications config files and libs.
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