This procedure applies to both the Multi-bundle as well as the Single-bundle distribution. The multi-bundle distribution is used for the walkthrough. (Verified with Eclipse 3.5.1).

1. Import the CXF DOSGi bundles and dependencies as plugins into the workspace
Go to File | Import and select Plugin-ins and Fragments.

2. select the directory that contains all the bundles of the distribution. For the multi-bundle distribution go to .../dosgi_bundles location of the distribution. For the single-bundle distribution go to the location that contains the cxf-dosgi-ri-singlebundle-distribution-<version>.jar bundle.

Simply add all the bundles found in this location.

3. now you have all the bundles imported in Eclipse and can start developing your distributed OSGi application.

4. Develop your Distributed OSGi application.
Here's how you develop a Distributed OSGi app in Eclipse

5. Launch the whole lot in Equinox. If you do this in debug mode you can set breakpoints in you DOSGi code, step through it etc.
To do this, create a new OSGi Framework Launch configuration. Select all the bundles in the workspace but deselect all the bundles of the Target Platform (otherwise you get all of the Eclipse bundles launched, which is probably not what you want). Then hit the 'Add Required Bundles' button to just select the ones you need.

And click Debug (or Run) to launch.

6. Once started you can check that your OSGi service is actually remoted you can request it's WSDL. The one for the Temperature Service developed above looks like this: