Apologies Bijo. It seems the so called "Latest" documentation was out of date. I have just updated it...

Please use this..
[pascal]
program SDLtest;

uses
sdl,
sdlutils;

var
_screen : PSDL_Surface;
event : TSDL_Event;
Done : Boolean = False;

begin
// Initialise the SDL video sub-system
if ( SDL_Init( SDL_INIT_VIDEO) < 0 ) then
begin
exit;
end;

// Set the Window Width, Height, Colour Depth and turn on double buffering
_screen := SDL_SetVideoMode( 640, 480, 16, SDL_DOUBLEBUF );

if ( _screen <> nil ) then
begin
repeat
// This is where we check for Screen, Keyboard and Mouse events
while ( SDL_PollEvent( @event ) = 1 ) do
begin
if ( event.type_ = SDL_QUITEV ) then
Done := True;
end;

SDL_Flip(_screen);
until Done;

// Since we are finished with it we need to free it
SDL_FreeSurface(_screen);
end;

// Shut Down SDL and exit
SDL_Quit;
end.
[/pascal]

This should compile and run.