Hi Bill,
'workspace' and 'project' are two different concepts:
- the workspace is where you store your 'working' settings and to organize your projects. The workspace use a kind of data base which gets into the .metadata folder inside that workspace folder. You can store projects in the workspace directory too (this is in many cases the default), but my recommendation is to have the projects stored outside the workspace folder and instead link to them. There are many reason for this, including to keep things independent of Eclipse or organizing the projects in the way you want, or simply to make it easier to work with version control systems.
- the project is a folder which contains a .project file plus other project related files, including typically the source files and so on. The project is a kind of container to organize and store things
You can add, import and export projects with a workspace. If you import one or more projects, you can choose to link to it (your workspace simply will contain a link to the target project) or you can copy it (it will physically copy the project folder into your workspace folder). The important thing with the copy is that it is simply a copy of that project folder with all its files and subdirectories. But it is not a 'deep' copy in the sense that it will copy all the depending projects or relations. So if that target project uses files from a parent project or from folders relative to that project, a copy of the project will fail, because the links will be broken. If you just link to that importing project, the links remain intact. Moreover if you link to that project from different workspaces, you don't end up with copies (unless you want copies).
As to the advice to use a new workspace for every new eclipse version: the reason is that Eclipse is able to upgrade its metadata to a newer Eclipse version (it is upwards compatible), the opposite is not true: if you use a workspace with a newer Eclipse and then later use that workspace with a previous versions, things likely might be broken: that's the recommenation to use dedicated workspaces for each Eclipse but link to the projects. There still might be a problem if the project settings go through dramatic changes between versions (especially build tool settings and the like), in that case you better keep the projects tight to a version of your Eclipse.
I hope this helps,
Erich