It seems that TeXlipse won't download missing packages.
The build just stops
pdflatex> ! LaTeX Error: File `varwidth.sty' not found.
pdflatex> Type X to quit or <RETURN> to proceed,
pdflatex> or enter new name. (Default extension: sty)
and a file dialogue pops up asking for that .sty file.
Does anybody know what needs to be done here?
As far as I know this is not the fault of TeXlipse, as usually it is the Tex distribution (MikTeX, TeXLive, etc) that handles the downloading of packages.
For MikTeX, see for instance http://tex.stackexchange.com/questions/49338/miktex-2-9-install-packages-on-the-fly