I have installed maven eclipse plugin i.e m2eclipse from "sonatype" . I have no experience with m2eclipse. Right now i want to set up a repository which will be used by my team members as well. So, can anyone give me a detailed description on how to "set up a repository" in which i can install jars which instead will be used by my fellow team members.
m2eclipse has nothing to do with setting up a local Maven repository.
Are you sure you're asking what you're actually asking? You don't need to explicitly set up a local Maven repository just to use Maven--just running Maven will create a personal repository for yourself in your home directory (by default). If you want to set up a shared repository that's a completely different thing, and your best bet is to go through the tutorials available on the web.