It sounds like your Designer instance may be using a JRE and not a JDK. Even though your eclipse/JBDS install may have a JDK defined, you may have to explicitly tell it to use the JDK. One way to do that is to add the following to your eclipse.ini in the openFile section:
We still java issues. We weren't able to deploy the war file. The .java files aren't being converted to .class files. So we have changed our approach as below.
You won't get .class files if Eclipse can't find the JDK. The JDK is required to compile the java files.
That's not going to get picked up in Teiid Designer. It has to be added to the eclipse.in as described above. Anyway, the auto-generated REST war is a fine approach. Also, you may want to take a look at Teiid OData.
My colleague was able import invokeHttp and create a TABLE_A with SQL transformation between inokeHttp and TABLE_A for Teiidjdbc access. Data is accessible through squirrel.
Then create RESTPROC_A and sql transformation between TABLE_A and RESTPROC_A, then create and deploy VDB using auto generate rest war option under properties and data is accessible through rest. we don't have to manually deploy war file in this approach. In my previous approach, war file is downloaded to my local and i need to add it to /standalone/deployments folder and it tries to get deployed but fails. So im working on my colleagues approach and im 80% through it. Was able to import invokeHttp, create table, sql transformation, create and deploy vdb for data is available from Squirrel. im left with second part. create RESTPROC, sql transformation and deploy the vdb using auto generate rest war option under properties. im aving issues with sql transformation betwen RESTPROC and table.
Any help is very much appreciated. Thank you.
For that it all depends on the Metadata you define on the procedure. See  for all the properties exposed, and you need to set them. For above transformation try to execute that directly and see what is the error. note SquirreL does not show results properly for XML results.