I cannot find \"create project from existing source\" in Eclipse Indigo while I am trying to create a \"java project\". When I select Java project and then next window come
If your source directory is inside the current workspace, ERiz's answer won't work due to a bug in Eclipse. (It prints out the error "folder overlaps the location of an existing project"). Instead, you should leave Use Default Location checked and type in the name of the folder as your project name.
See here for more discussion about the problem.