To make other source projects available as dependencies to other projects, open Properties for the project you want to make available. On Android properties, check ‘is Library’ – this makes the project available as a Library project.
In other projects that are dependent on your Library project, on the same Android properties page, press the Add button in the Library section – you’ll see your Library projects listed. Select the one’s that you are dependent on, then Ok.
You don’t need to add any other Project References for compile or runtime time dependencies, this is all taken care of with the Android Library setting.