I am running Tomcat bundled with Liferay5.2.3 and use Eclipse 3.5 (Galileo) as my IDE. I set up my Tomcat server in Eclipse as per this blog entry: http://www.jroller.com/h
You can find the following folder structure in your workspace:
.metadata.plugins\org.eclipse.wst.server.core\tmp0\
Here you will find the folder which is attached with tomcat in eclipse.