The video that you found was a good clue. While adding the local repository, they clicked on "directory". To add the inbox, click on "HTTP" instead, and change the URL template to 'http://source.squeak.org/inbox'.
p.s. IMHO really basic questions like this would be better asked on the Squeak Beginner list (http://lists.squeak.org/mailman/listinfo/beginners). It seems to me that this process should be better documented and asking there will both allow you to have a give and take more easily then peppering SO with multiple questions, as well as give them the opportunity to see the apparent lack of clarity in the current documentation.
p.p.s. Although you obviously know this since you've already made your change, there seems to be a little confusion in the terminology... You don't have to "checkout" anything. Squeak does not use locking in its VCS. The package in question is already in a Squeak trunk image. Make your changes locally in such an image, and then commit to the inbox via the Monticello Browser. From there, a core developer will integrate the changes if approved.