******QUESTION WAS EDITED, Please see below**
I am running into a problem when I'm importing a sample project (Calendar-v2-atom-android-sample) into eclipse.
Link for Download Setup: http://samples.google-api-java-client.googlecode.com/hg/calendar-v2-atom-android-sample/instructions.html?r=default
I used Mercurial to clone the project to a local directory. I then imported the file and added the external JARs which are the Google Client Java API (http://code.google.com/p/google-api-java-client/wiki/Setup).
I have installed the Maven and Mercurial Plugins for Eclipse.
The first problem I ran into is that beside the root project folder in the Package Explorer of eclipse, there was a message that said "hg status pending...". I fixed this by doing the following: Window -> Preferences -> Team -> Mercurial -> uncheck “Use default (built-in) Mercurial executable"
I then set the location of the hg.exe to C:\Program Files\TortoiseHg\hg.exe
The problem I'm having now, and which I do not understand is that I am getting little tags on the files in the Package Explorer of eclipse. A little exclamation mark appears by the root project file and yellow tags appear on most of the other files. When I try to compile I get a message that I need to fix errors in the project. I don't know where these errors are.
Here is an image of my workspace:

Please take a look at the tags on the folders.
***IF YOU HAVE TROUBLE SEEING THE IMAGE JUST ZOOM INTO THE PAGE AND IT WILL BE CLEARER.
I would really appreciate anyone's input on this issue.
If anything is unclear please ask and I will try and explain in better.
Cheers.
EDIT---------------------------------------------------------------
This is the problem I'm getting after Merlin answered my first question. Below is a picture of my "Problem" view. It seems to be searching for some JAR files in a repository, but I don't understand why its looking for them there.

How should I approach this problem?