I downloaded the latest Mentor Graphics Board Station Flow software for Linux from http://www.mentor.com/supportnet/downloads.cfm. This package was untarred to its own directory and then I ran install.ixl. This set up the Mentor Graphics install program, which then automatically started. For this first installation, I installed the software to /sw/mgc. In that directory, it created 2005BST and _msidata directories.

I set the following environment variables in /etc/profile:
export SDD_ROOT=/sw/mgc/2005BST/SDD_HOME
export MGC_HOME=/sw/mgc/2005BST/MGC_HOME.ixl
export MGLS_LICENSE_FILE=1717@eshop
export MGC_DATAPREP_DDMS=ON

And I added /sw/mgc/2005BST/MGC_HOME.ixl/bin to the PATH.

When I tried to start dmgr, I got an error message the the version of flexlm that I was running was too old. So I had to go and update flexlm on our server. After I updated to 10.8, dmgr started fine.