Walking my colleague through these steps, it occurred to me that it would be much easier if someone created an Eclipse Plugin. The good news is that someone did. The installation is, with a minor exception, pretty straight forward.
- Under the Help menu in Eclipse Helios,select "install new software"
- Enter the address: in the Work With combo and click add.
- Give it a meaningful name such as MDS PhoneGap for Android Plug-In
After completing the installation, you'll be able to start a new PhoneGap project by selecting File->New->Other->PhoneGap for Android Project. The wizard allows you to specify local, web, internal, or git repository locations for the PhoneGap bits. As a bonus, you can also opt to include the JQueryMobile or Sencha Touch in the project and build the sample application. It's never been easier to get started with mobile development.