woops. I just realized this is the totally wrong forum.
sorry about that.
Umm, I think that this is the correct forum. The JBoss Tools come with tools for creating and editing Seam projects. They are not Seam, itself. Therefore, you need to download Seam from the Seam website and unzip it somewhere. Then in the New Seam Runtime dialog, browse to the folder where you unzipped Seam.