Null Pointer from LibGDX Setup

I attempted to setup libGDX while following a video and got a null pointer exception. The details were that it was a null pointer exception. Here is a screenshot of my setup. (assume I have downloaded all of the resources for libgdx)

Was I not supposed to save it to my workspace?

The exception occurs when I try to import it.
(Is this enough information?)

EDIT: That 100 bar is my headset volume. I’m new to windows 8, how do i get rid of that?