The standard conversion project configuration can use a local FWD installation directly. This would be done inside the top level of the conversion project.

Linux Windows
The most common approach is to use a symlink from the conversion project directory to the FWD directory. The following instructions assume that the FWD sources have been built in ~/projects/p2j/ and the conversion project being setup is in ~/projects/hotel/ (we are using the Hotel sample application as the example here).

cd ~/projects/hotel/
ln -s ../p2j/ p2j
Since Windows Vista, symlinks (soft links) are available using the mklink utility. The command is(it is required to run command line as Administrator to complete this task):
cd c:\projects\hotel\
mklink /D p2j ..\p2j

If you encounter You do not have sufficient privilege to perform this operation. you may need to run mklink with elevated privileges (Right-click the Command Prompt shortcut and Run As Administrator). Make sure there aren't any explicit Deny permissions set for the Administrators group on the target directory.
In Windows XP this does not work so it requires copying the full c:\projects\p2j directory instead of making a link. Alternatively, the FWD install can be placed directly on the conversion project directory.

The result is a p2j/ directory in the top level conversion project directory. This is sufficient to support all other conversion processing which is usually automated via an Apache Ant build script.

The "p2j" is a historical name for "Progress 4GL to Java". References to that name are still present in the code. Those references will be removed and/or replaced with references to "fwd", but that work is not yet complete.