I infact looked at the docs and examples and could not reach to conclusion (because they are aimed at getting started and api details). None of them show how to convert an existing project into drools (there were bits and pieces there, which I believe I covered in my question). I did look at my project under properties->java build path ->libraries and I see drools library with almost 20 files there; so I am thinking the problem is not classpath related (may be related to directory structure or kmodule.xml is not linking the class files with rules file correctly). I am newbie to drools..
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