The DML Toolkit requires that you already have a Simics installation; cf. Section 1.1. In the rest of this document, we will refer to the file system path of the root directory of your Simics installation as [simics], and to your "home" directory as [home].
How to set up a working Simics build environment is described detail in the Simics Programming Guide.
Note that to develop Simics modules on the Windows platform, you need to work in a Cygwin environment (http://www.cygwin.com/), with the default packages of the Cygwin "devel" category installed, and the separately installed MinGW compiler suite (http://www.mingw.org/); see the Simics Installation Guide for Windows for more information. You also need to ensure that Simics isn't installed in a directory whose name contains any spaces, since this will confuse the build scripts.
The DML Toolkit package can be installed at the same time as the Simics base installation, using the normal install script. See the Simics Installation Guide for details.