Out of frustration I thought I'd pop this up.
To open Logcat in Eclipse follow these steps:
1) Click Window -> Open Perspective -> DDMS
2) Click the new DDMs button in the top-right corner. Something similar to this should appear
3) The buttons in the square box indicate logging level Verbose - Debug - Info - Warning - Exception. See here for how to use the Log.
To use Logcat from the command line, find your adk tools file and enter adb logcat.
With thanks to ykyuen for that image. All copyright remains with the image author.