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The following is a breakdown of my current development set up.

1. Install Sublime Text 2 and Package Control
2. Install MsysGit (http://git-scm.com/)
3. Install ConEmu (http://code.google.com/p/conemu-maximus5/)
4. Upgrade your Powershell to v3 (http://www.microsoft.com/en-us/download/details.aspx?id=34595)
5. Configure ConEmu to use Powershell:
   1. Open settings > Startup > Tasks
   2. Click the + button to add a new task
   3. Set Task Name to: Powershell 3
   4. Set Task Parameters to: /single /Dir %userprofile%
   5. %SystemRoot%\\syswow64\\WindowsPowerShell\\v1.0\\powershell.exe
6. Install Posh-Git:

   (new-object Net.WebClient).DownloadString("http://psget.net/GetPsGet.ps1") | iex
   install-module posh-git

   Take care to ensure your firewall isn't blocking Powershell (my Tinywall was getting in the way)
7. To pull Sublime Text 2 and ConEmu together, install Sublime Terminal and add the following into Sublime Terminal's user preferences:

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   /*
   {
       // if you want to use Console2
       "terminal": "C:/Program Files (x86)/Console2/Console.exe",
       "parameters": ["-d", "%CWD%"]
   }
   */
   {
   ​    // if you prefer (as I do) to use ConEmu (please amend the path if you use x86)
       "terminal": "C:/Program Files/ConEmu/ConEmu64.exe",
       "parameters": ["/Dir", "%CWD%"]
   }
   

}

Credits:
Scott Hanselman
Haacked.com
LazyCoder.com
PowerShell Community (helped diagnose firewall block)