Now that your project is created, Eclipse will make a directory for it in the
same directory where your workspace is located.
The new files will appear and after the rebuild the src folder will
exhibit some compilation errors.
My environment required the inclusion of four external jar files. These are:
bcprov-jdk15-139.jar
itext-1.3.jar
js.jar, available in the zipfile
rhino1_7R1.zip
l2fprod-common-all.jar, available in the zipfile
l2fprod-common-7.3-20070317.zip
Configure the build path to include these external jar files, and take
note of the directory in which you place them. I placed them in a directory
called jpedal-jars in my workspace directory.
Access the build path configuration by right clicking on the jpedal project,
selecting Build Path, and then selecting Configure Build Path.
This should look something like this in Eclipse:

Select the Libraries tab, and click the Add External JARs button.
Select the files in the file system browser.

It is now a simple matter to reconfigure the provided build.xml so that it can
create a jpedal jar file for you.
First, the property with name lib.dir needs to have its location reflect where
you put the four external jar files. In my case, I put them in a directory
that was a sibling of my jpedal project directory.

Now the classpath in build.xml may be modified to point to these jar files.
The provided build.xml refers to these four files:
itext-1.3.jar
jai_core.jar
jai_codec.jar
bcprov-jdk14-119.jar
However, in my build environment, the jai_core.jar and jai_codec.jar were
already included in the JRE System Library [JVM 1.5.0 (MacOS X Default)].
In addition, my environment lacked the js.jar and l2fprod-common-all.jar,
and the itext and bcprov jar files were old versions. The file
ItextFunctions.java would not compile, however, with the newest version
of itext, and so I used the 1.3 version as per the provided instructions.
I modified the classpath to contain these elements:
<pathelement location="${lib.dir}/itext-1.3.jar" />
<pathelement location="${lib.dir}/js.jar" />
<pathelement location="${lib.dir}/l2fprod-common-all.jar" />
<pathelement location="${lib.dir}/bcprov-jdk15-139.jar" />
As pictured here:

Finally, simply run the build.xml as an Ant build to generate a JPedal jar file.