I have Eclipse 3.7 installed which I am using for developing non web based programs (no servlet,jsp etc).
However now I need to work on some web based programming. however I am not seeing any option to choose the App/web server through my preference.I understand that I might need to install some kind of plugin but am not sure which plugin (on browsing the google, it looks like I need to install some other version of Eclipse).
Please advice if installing a new version of eclipse is the only option?
Yes, you can get better support for web development by installing plugins. If you're using the Tomcat webapp server, you can install the sysdeo plugin and point it to a copy of Tomcat.
There is a packaging of Eclipse with plugins pre-bundled for web development. They add support for things like editing common web config files and stuff like that. There's also another server interface plugin (WTP) in that bundle that can be used to interact with webapp servers. However, I despise it so much that I install the sysdeo plugin and use it, instead.
An IDE is no substitute for an Intelligent Developer.