I am able to get the hellocascades project built and running/deployed on the BlackBerry Simulator.
Perform step 1 as your outlined.
For your step 2 try:
File -> Import -> General (Existing Projects into Workspace) -> Next ...
Browse for the 'hellocascades' project folder -> Finish
Once you have the project imported into the IDE, follow your step 3:
In Project Explorer -> right-click hellocascades -> Build Configurations -> Set Active -> 5-Simulator-Debug
and then..
In Project Explorer -> right-click hellocascades -> Build Project
Continue on with your step 4 and click on 'Run' within the 'Run Configurations' environment after you have inputted the proper settings/fields.
After you click on 'Run' the application is automatically built and deployed over to the BlackBerry simulator