Eachline has the name of the keyword, followed by a tab (not spaces), followed by the kind of keyword. Classes should be KEYWORD1 and are colored orange; functions should be KEYWORD2 and will be brown. You'll have to restart the Arduino environment to get it to recognize the new keywords.
If you restart the Arduino environment (this is the last time, I promise) - you'll see a Library-Morse item inside the File > Sketchbook > Examples menu containing your example.
You might want to add some comments that better explain how to use your library.
If you'd like to check out the complete library (with keywords and example), you can download it: Morse.zip.
That's all for now but I'll probably write an advanced library tutorial soon. In the meantime, if you have any problems or suggestions, please post them to the Software Development forum.
For more information, see the API Style Guide for information on making a good Arduino-style API for your library.