Repeating message in Studio: "^Sources is not setup so hooks will not work"

This is coming from the Source Control class set up in this Namespace.  If you search for "Source Control" in the SMP, and look at the settings for that Namespace you will see that a class is selected.  Change to None if you don't wish to have Serverside (embedded) Source Control active.  If you do wish to use embedded source control, then you will need to provided item type mappings in the ^Sources global in order for it to work (at least to allow the one you currently have active to work - different hooks work differently in terms of configuration)