How to deploy webdynpro on Potal and locally for Testing

Dear Guys

I am using a Developer studio for developing the webdynpro on my PC. I have created an sample application but while deploying it on my local PC I am getting following error.

Oct 24, 2007 8:51:26 PM /userOut/deploy (com.sap.ide.eclipse.sdm.threading.DeployThreadManager) [Thread[Deploy Thread,5,main]] ERROR:

[001]Deployment aborted

Deployment exception : Cannot determine sdm host (is empty). Please configure your engine/sdm correctly !

Can any one tell whats the reason. Secondly can any body explain how to deploy the webdynpro on Enterprise Portal. Is there would be some transport system.