Linux development environment setup

[FloRider]

Ah! This page explains everything (except for the toolchains, I think):
http://www.linuxtopia.org/online_books/linux_beginner_books/linux_filesystem/

I'm installing a fresh Linux system (on a virtual machine on Win7) and I'm new to Linux.

1. What libs am I going to need for kernel development? I've got a Lenovo A2109, on kernel 3.1.10 and ROM 4.0.4.
2. What directory should I install my development tools (like Eclipse) in?
3. What directory should I use for my projects (e.g. modding the stock kernel)?
4. Where should I put my toolchains?

Thanks