...
Both of these jars can be found in the [pentaho_project]/third-party\/test-lib directory. You add them to your build path in Eclipse through the Project Properties dialog.
3. Modify the hibernate.cfg.xml File
The hibernate.cfg.xml file has replacement variables in it that get replaced when a server build is performed. For a standalone run, we need to fill in these variables manually.
This file can be found in [pentaho_project]/server/pentaho/res/hibernate/hsqldb/hibernate.cfg.xml. I am assuming you are using the default Hypersonic server repository. If your server repository is some other RDBMS flavor, then make sure you update the appropriate file.
Open the hibernate.cfg.xml file, and replace the single instance of HOST:PORT with localhost:9001.
This file gets copied into the classes directory when the server's Java files are compiled, so make sure that the file that is in the classes directory has the proper values. That is the copy of the file that the standalone session will read and run with. The path to the classes directory in Eclipse is [pentaho_project]/build/pentaho-classes.