The specified Tomcat installation directory does not exist

If you encountered this error on Eclipse:

The specified Tomcat installation directory does not exist.

Check for CATALINA_HOME value on commandline. Type set on commandline, you can then see the value of CATALINA_HOME, mine is /Library/Tomcat/Home

Go to Eclipse's Preferences. Go to Server > Runtime Environments. Then click Add, then select Apache Tomcat, click Next; on Tomcat installation directory, click Browse..., then paste /Library/Tomcat/Home to the Open dialog textbox; if you are using OS X press command+shift+G first, then paste /Library/Tomcat/Home in the Go to the folder's textbox, then click Go, then click Open

Then click Finish, then click OK

You can now create Dynamic Web Project

Cannot find /Library/Tomcat/Home/bin/setclasspath.sh

When starting Tomcat on Lion:

$ /Library/Tomcat/bin/startup.sh 

And you encountered this error:

Cannot find /Library/Tomcat/Home/bin/setclasspath.sh This file is needed to run this program

just unset the CATALINA_HOME variable:

$ unset CATALINA_HOME

Then run this again:

/Library/Tomcat/bin/startup.sh 

Then visit http://127.0.0.1:8080

Troubleshooting idea got from this: http://www.malisphoto.com/tips/tomcatonosx.html

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Another approach is to use sudo:

sudo /Library/Tomcat/bin/startup.sh 

Then visit http://127.0.0.1:8080