I am using MikTeX 2.9 version and although the manual says I can use LuaTeX, there is nothing in the TeXworks menu. I can see all the other members of the TeX family but none for LuaTeX.
Can someone point me as to how to configure it? I am using Windows Vista.


%!TEX ...line only works ifTeXworkshas been configured to useLua(La)TeXbefore, as described in the first part of your answer. – diabonas Apr 09 '11 at 14:57$synctexoption- it differs from configuration to configuration and I've seen both possibilities. I updated my answer to include this. – diabonas Apr 09 '11 at 19:18