Basic4Android libraries should be compiled using java compiance level 1.6.
I've found using compliance level 1.7 causes this 'class not found' error.
Right click your project in Eclipse and choose Properties.
Select Java Compiler in left hand pane.
What java compliance level is selected?
If you have java 1.7 installed and Eclipse has chosen compliance level 1.7 for you then you can change to compliance level 1.6 with no need to install java 1.6.
I have java 1.7 installed here and can choose compliance level 1.6 or 1.7 with no need to have java 1.6 installed.
Martin.