Must we create a Dynamic Web project and then add JSF capability in order for xhtml code assist to work?
I simply had a java project and then added JSF capability and there were no errors.
When I imported the sample Seam proejcts (e.g. dvdstore) from Eclipse Help --> Project examples menu item, it created 4 WTP projects, one of which seemed to be a dynamic web project.
You see WebContent rather than WEB-ROOT inside the web project. Perhaps that is tripping up JBoss tools?
This issue has been resolved. You need to add JSF capability and then add Seam setup (not Seam facet which will create a whole bunch of files/directories in your project similar to what seam-gen does like *.css and Authenticator stub class).
Code assist works fine now for both various JSF tags as well as Seam components and their API.