After this you have to create subdir's in this dir. Next you have to copy the needed files to your DMOD dir. A good suggestion is to copy ALL the rest of the .C files to, so you don't have to make all new scripts for every thing you want to do. It will help you to start editing. As you might have noticed, you're in DinkEdit now, and there is alot of purple squares all over your screen.
Every square corresponds to a screen in the actual game.
The purple square means that there is nothing in that screen. The program will load up a new blank screen, this is how the screen will look like in the actual game. Also there is a help text,under the graphics. Here you can find lots of backgrounds to choose from. This way you can build up your backgrounds, with help from this technique.