Video 1 shows you the thought process behind the converting the theme to Drupal 7 (What do I need to create for the page? What regions? etc) , the modules / tools needed and begins preparing the site for theming.
Acquia Development Environment :: http://acquia.com/downloads#acquia-drupal
Drupal 7 Core :: http://drupal.org/project/drupal
Modules :: Use the search function on drupal.org and make sure you have the following modules :: Views, Views slideshow, Ctools, Nodequeue, Libraries, Devel, Zenophile, Backup and Migrate, Token, Pathauto,
Themes :: Use the search function on drupal.org :: Zen
IDE: Netbeans :: http://netbeans.org/
Views Slideshow themeing video on mustard seed media :: http://mustardseedmedia.com/podcast/episode42
Photoshop TechLayout HTML Files