I don't have the option to create a new C project I tried the following:
The recommended way to install this plug-in is to use the Eclipse standard install/update mechanism:
Eclipse menu: Help → Install New Software
in the Install window, click the Add... button (on future updates, just select the URL)
fill in Location: with http://gnuarmeclipse.sourceforge.net/updates
click the OK button
the main window will list There are no categorized items
disable the Group items by category option
in the main window, select the GNU ARM C/C++ Development Support
click the Next button
accept the unsigned plug-in
Once you define the update site URL, further updates are greatly simplified (Help -> Check For Updates).
Still no luck, When I choose New Project I get two choices 1)general or 2)CVS.