Using the New -> Other -> BPEL 2.0 -> New BPEL Process File opens a Dialog that asks user to specify the BPEL PRocess Name, Namespace, and Template. however, even if a Namespace is selected, it still shows and error 'Namespace of the process cannot be empty:, and will not allow the user to finish creating the new process.
Checking and then unchecking the Abstract Process box clears the error, and allows the user to continue.