"You don't have any groups for this element."

So I followed the instructions on skinr.org
Plugin libraries are found
Click on edit skin

"You don't have any groups for this element."

I add a group edit the settings and it works.

However, I was left wondering why when I clicked on edit skin it didn't just go straight to the skinr settings and display the plugins you coded.

Turns out (thank you @moonray) the group it is requesting you to create is a skinr context group. While I definitely noticed the context options were there when I added a group it was not entirely clear as to why I was being required to add a group to begin with. I may be missing something but it might be worth associating the "group" option that skinr_context adds directly with contexts.

Example:

+ Add context group

You don't have any context groups created for this element.