Well, in SLUDGE's development kit you'll find the following tools:
Floor maker -- You can draw lines over your images to define the walkable areas of your game.
Sprite bank editor -- With this program you can convert your images so that SLUDGE can use them. You can insert frames which together form an animation. You can't draw with this tool though, so you'll need to draw the frames of an animation with your paint program and then you can import them with this tool
Z-buffer maker -- With this program you can manage depth. Certain objects need to be in front ro to the back of other objects
Project manager -- Compiles the game, let's you set the speed of frames per second, and much more options.