can anybody tell me how or point me to any doc that tells me how to set up and test webfocus project in websphere studio test environment?

Are you talking about WebSphere Application Developers Studio OR WebSphere Studio (a product that is similar to FrontPage)?

At this time we don't have any specific doc, but I spoke to the Product Manager and he asked me to ask you exactly what you're trying to do and then he can give you specific information.

You should be able to setup WSAD/WTE with WebFOCUS, we do not have details yet, however the setup should be similar to Tomcat.