These are just rough notes for now, please ask questions on the Dev list if you need to. If you can make these notes clearer then that will help too.

You need the IvyDE plugin

Once you installed that you need to right click on the ivy.xml file and select "add Ivy Library". This will add a special Eclipse classpath entry for the ivy dependencies.

I think you will also need to set the path to the ivyconf.xml file in the projects properties (right click on the project, and select IVY).

To update the dependencies, right click on the ivy.xml Library entry in the package explorer and select "Resolve".