The Project Structure wizard page allows you to specify the project name, location, settings and target.
When choosing a name for the fragment project, the reverse naming domain convention (e.g. com.example.abc) is recommended - but not enforced by PDE.
The default location for the fragment project is a subdirectory nested inside the workspace location. To change the location, uncheck the Use default location checkbox and enter the location of your choice.
Whether or not a fragment project should be created as a Java project depends on whether the fragment will contribute code. Fragment projects that contribute code are housed inside a Java project. Other plug-ins, such as documentation plug-ins do not contribute code and can therefore be contained in simple projects.
The Eclipse vs. OSGi framework choice acts as pre-filter to determine what initial pages will be visible in the plug-in manifest editor when it opens.
Since the extension registry is Eclipse-specific content, the Extensions and Extension Points pages of the manifest editor are visible only when the Eclipse version option is chosen.
When targeting an OSGi framework, you have a choice between the Equinox and standard frameworks. The Equinox OSGi framework augments the MANIFEST.MF content with Eclipse-specific headers (e.g. Eclipse-LazyStart) and directives (e.g. x-friends). If you do not wish to use these Eclipse-specific headers and attributes, then choose the standard option.
For convenience, plug-in projects can easily be associated with working sets which are defined in the workbench.