- I downloaded the jar file and placed it into plugins dir
- I downloaded the binary and placed it into some other dir
- I bounced eclipse (Juno - Version: 4.2.0)
- I updated the jadclipse to point to the correct folder

When clicking on a method that exists in a jar whose source i don't have, decompilation does not happen.
Did i miss something?

Did you change the default editor for class files as stated in the JadClipse wiki?
For more recent releases of Eclipse, also make sure that '.class without source' is set to use JadClipse Class File Viewer by default. Installing the plugin will only set the '.class' only by default.