1) 2 answers to that. First, if you run ./funcunit/envjs funcunit/funcunit.html, it should start selenium automatically. If it doesn't, for some reason its taking too long on your system. It usually waits 3 seconds before throwing that message. You can increase that number in funcunit/resources/selenium_start.js.
Calling steal/js -selenium should work and is a reliable way to make sure selenium is started in time for the tests to run. It doesn't work because I changed a file name. That's a bug that I'll fix.
2) It should be selenium-server-standalone-2.0a5.jar. Its renamed to that because this is the raw selenium file now, instead of a modified version.
Ok, I just updated to the latest code today (5/31/11). #2 is now solved but #1 is still not starting even if change the timeout to 30. Is there a suggested way for me to debug this issue of selenium not starting. What are other things I could look at?