Sitecore 7 Installation

Simply download the nuget package and start by adding a configuration file like this example below named Sitecore.ContentSearch.Lucinq.Index.Master.config

Repeat for the web database.

Pre update 1

<configuration xmlns:patch="http://www.sitecore.net/xmlconfig/">
  <sitecore>
    <contentSearch>
      <configuration type="Sitecore.ContentSearch.LuceneProvider.LuceneSearchConfiguration, Sitecore.ContentSearch.LuceneProvider">
        <indexes hint="list:AddIndex">
          <index id="lucinq_master_index" type="Lucinq.SitecoreIntegration.Sitecore7.Indexing.LucinqIndex, Lucinq.SitecoreIntegration.Sitecore7">
            <param desc="name">$(id)</param>
            <param desc="folder">$(id)</param>
            <!-- This initializes index property store. Id has to be set to the index id -->
            <param desc="propertyStore" ref="contentSearch/databasePropertyStore" param1="$(id)" />
			<param desc="rootPaths">/sitecore/content|/sitecore/media library</param>
            <strategies hint="list:AddStrategy">
              <!-- NOTE: order of these is controls the execution order -->
              <strategy ref="contentSearch/indexUpdateStrategies/onPublishEndAsync" />
            </strategies>
            <commitPolicy hint="raw:SetCommitPolicy">
              <policy type="Sitecore.ContentSearch.TimeIntervalCommitPolicy, Sitecore.ContentSearch" />
            </commitPolicy>
            <commitPolicyExecutor hint="raw:SetCommitPolicyExecutor">
              <policyExecutor type="Sitecore.ContentSearch.CommitPolicyExecutor, Sitecore.ContentSearch" />
            </commitPolicyExecutor>
            <locations hint="list:AddCrawler">
              <crawler type="Sitecore.ContentSearch.LuceneProvider.Crawlers.DefaultCrawler, Sitecore.ContentSearch.LuceneProvider">
                <Database>master</Database>
                <Root>/sitecore/content</Root>
              </crawler>
            </locations>
          </index>
        </indexes>   
      </configuration>
    </contentSearch>
  </sitecore>
</configuration>

Post Update 1:

<configuration xmlns:patch="http://www.sitecore.net/xmlconfig/">
  <sitecore>
    <contentSearch>
      <configuration type="Sitecore.ContentSearch.LuceneProvider.LuceneSearchConfiguration, Sitecore.ContentSearch.LuceneProvider">
        <indexes hint="list:AddIndex">
          <index id="lucinq_master_index" type="Lucinq.SitecoreIntegration.Sitecore7.Indexing.LucinqIndex, Lucinq.SitecoreIntegration.Sitecore7">
            <param desc="name">$(id)</param>
            <param desc="folder">$(id)</param>
            <!-- This initializes index property store. Id has to be set to the index id -->
            <param desc="propertyStore" ref="contentSearch/databasePropertyStore" param1="$(id)" />
			<param desc="rootPaths">/sitecore/content|/sitecore/media library</param>
            <strategies hint="list:AddStrategy">
              <!-- NOTE: order of these is controls the execution order -->
              <strategy ref="contentSearch/indexUpdateStrategies/syncMaster" />
            </strategies>
            <commitPolicyExecutor type="Sitecore.ContentSearch.CommitPolicyExecutor, Sitecore.ContentSearch">
              <policies hint="list:AddCommitPolicy">
                <policy type="Sitecore.ContentSearch.TimeIntervalCommitPolicy, Sitecore.ContentSearch" />
              </policies>
            </commitPolicyExecutor>
            <locations hint="list:AddCrawler">
              <crawler type="Sitecore.ContentSearch.SitecoreItemCrawler, Sitecore.ContentSearch">
                <Database>master</Database>
				<Root>/sitecore</Root>
              </crawler>
            </locations>
          </index>
        </indexes>
      </configuration>
    </contentSearch>
  </sitecore>
</configuration>