In Eclipse I have set the classpath to my $DERBY_HOME directory. Even so .. when I try and compile my simple code (which references the driver class: org.apache.derby.jdbc.EmbeddedDriver) I am faced with a ClassNotFound exception. The only way I can get the code to compile within the Eclipse IDE (works fine from my terminal) is if I include a reference to derby.jar at the project scope.

I'm confused .. I thought having set the classpath to a parent directory containing the required classes, the IDE would search through recursively to find the required class file ?