Well there are several ways. 

1. You can install apache, php, pdo on your local desktop using the downloadable windows versions.  And develope locally before sending it live.  (which has some limitations is still a popular way)

2. You can set up a devopment environment (as i do with my scripts) using one of your cPanel accounts and a add-on or subdomain and then limit access to that area. 

  2a.  You can also do #2 in conjunction with using a development (what i call a version control)  script which will give you some features as you develope, including change logs, a diff feature which compares two files and shows you the diff between then, and a file sign in sign out feature in the event you have multiple people working on the same script. 

I prefer 2 and 2a in my script dev.   I actually have written a version controll system but due to my motorcycle accident and the fact that i need to update it, i took it off the market until i an get enough stamina back to get that poject done, as i am not doing much dev at this time.

It all depends on how you want to do it.   But you cant do it by installing it to localhost.  It has to be setup in a domain or subdomain.

I am very much familiar with svn, git and meld. I am working on Ubuntu 12.04. So no downloadable version are available. You need to guide me which libraries I need to install. I did what was written in developer installation guide.

My question is if I cannot run oxwall at localhost then how can I debug the issues which are related with php or workflow. I think it will be more faster and accurate way if I can develop plugins over localend and then upload those changes to live site.

Please guide me know, how can I start development in IDE like eclipse of plugins and can test their behaviour locally.

Since i dont do it that way, i will have to pass this to one of the team members or another dev might be willing to assist.. :)

Good luck :)