After struggling to figure how to create a project form source the first time, I figured it was so easy that I would remember it. Neverless, several months later I failed to remember just how easy this is.
Here is the steps.
1. Click Window -> Show View -> Other
2. Type 'File' in the search box (without quotes)
3. Open the file view
4. Browse to the root of the source folder
5. Right click and click Promote to Project.