If you have not done so already, follow the instructions under SDK Pre-Requisites to get the basic software set up and running. Then download the SDK from the Develop to Sentinel page to a convenient location.
Complete the following steps for the initial SDK setup:
/proj as our chosen location; replace with your local choice.
/proj/content plus many directories underneath that.
/proj/content/dev/sdk > Finish (NOTE: DO NOT check the "Copy projects into workspace" button)
/proj/content/dev/collectors, /proj/content/dev/reports, and /proj/content/dev/actions.
A brief recording of the installation process is available.
(note: the Elluminate player may require a newer Java Web Start - if you get an error change your handler of *.jnlp files to be a newer version (I tested with javaws 1.6))
This completes the initial setup; after this you should review the type-specific development instructions; go back up to Develop to Sentinel and select the plug-in type of interest under Plugin Development.
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