While creating new Java project in Eclipse I got following warning “The current workspace uses 1.4 JRE…”

I have JRE7 on my system. I have added following lines in eclipse.ini
-vm
C:\Java\jre7\bin\javaw.exe
I have added JRE7 to Installed JREs through Windows -> Preferences-> Installed JREs.

Still under Compiler tab I can see only compiler compliance level till 6.

How can I change workspace JRE to JRE 7 ?
Java 7 support is only available since Eclipse Indigo SR1 (released about a month ago). So, upgrade Eclipse.