ok, after reading through on some options (sqlite, derby etc...), Ive made the decision to throw lower with HSQLDB. Ive downloaded it, educate yourself onto it and adopted a 'hello world' type intro into it, and am now stuck.

In my opinion you need to place the hsqldb.jar file within the src folder, and so i did just that. I Quickly designed a mention of package with Eclipse by starting Run -> Run Designs, then starting the Classpath tab, then clicking User Records, adding Exterior Jar, and choosing hsqldb.jar.

I recieve this :

java.lang.ClassNotFoundException: org.hsqldb.jdbcDriver

Heres my code :

package mysqlite;

import java.sql.*;

public class myclass {
    public static void main(String[] args) {
        try {
            Class.forName("org.hsqldb.jdbcDriver");

            String url = "jdbc:hsqldb:db";
            String user = "aUser";
            String password = "";

            Connection conn = DriverManager.getConnection(url, user, password);
        }
        catch(Exception e) {
            System.out.println(e.toString());           
        }
    }
}

I realize it's not able to locate a class, however i believed that was exactly what the hsqldb.jar provided.

No, you don't have to place it into src folder. src is perfect for source files (*.java). You need to add this jar to your classpath: click project qualities, choose "Java build path", choose tab "Libraries" and add the jar here.

The jar could be saved any place in your file system. Sometimes people create lib directory under project home and set all third party dependencies there.

Try putting the .jar here:

<YOUR_JAVA_HOME>\jre\lib\ext