How to add a Library Project to a android project?

I have created a new android project. I want to have a action bar at the top so I downloaded the Action Bar for Android Library because I want to support devices from android 2.1.

The description says

The action bar component is an Library Project. This means that there's no need to copy-paste resources into your own project, simply add the action bar component as a reference to any project.

I am new to android so what does this mean? How can I add the library to my existing project?

Import the library into your eclipse workspace:

• File->Import->General->Existing Projects into Workspace, Next

• Select root directory: /path/to/project

• Projects->Select All

At this point it fails because there is nothing to select and the next button is deactivated.

Any ideas?

1. File->New->Other
2. Select Android Project
3. Select "Create Project from existing source"
4. Click "Browse..." button and navigate to johannilsson-android-actionbar\actionbar
5. Finish (Now action bar project in your workspace)
6. Right-click on your project -> Properties
7. In Android->Library section click Add
8. select recently added project -> Ok
9. that's it!

Now you can use it