I am going to redo this lesson because it is so excellent, and I still haven't quite grasped the techniques, but I think Sculpt Tools UI doesn't work for Blender 2.78 :(
I struggled to get this to work. I did get it working in 2.78. A couple of notes:
- Install from zip works. I tested both links that Ken provided and both work in 2.78.
- Grease Cut works in object mode. I thought it would work in edit mode. But it does not. You need to be in OBJECT mode.
- Set grease pencil to "object" mode