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The first step of programming WOLips is Building WOLips. Once WOLips is properly built, then you're off to development. Development inside of Eclipse will give you the most power, but to take advantage of it will require a few additional steps when you want to do a full build again.
The main problem is that the PDE build of WOLips gives you a top level "projects" project that allows you to do a full build (which CONTAINS the plugin folders), but also checks out top level projects for each plugin to take advantage of PDE. What that means is that you will be mainly working in the top level plugin projects, but deploying from the "projects" project which won't have your changes. When it comes time to deploy again, you will need to either cvs update your "projects" project (if your changes were committed to CVS), or you will need to copy your plugin project changes on top of the corresponding folders in your projects/wolips/plugins.