More progress, almost done:

Fig1. Final coordinate system with perspective and distortion correction.

Fig 2. The camera calibration dialog. Here the coefficients correspond to a GoPro Hero 2 in Medium mode (127°).
Basically there are two ways to get the distortion coefficients. Both imply filming a checkerboard like pattern, then:
In Kinovea, by creating several "Distortion grids", positionning them manually and then clicking "Calibrate camera" in this dialog.
By using Agisoft Lens (freeware), importing the images and performing the (automated) calibration there. Then by importing the resulting XML file in Kinovea through this dialog.
This is a one-time-per-camera operation.
The "Image" tab shows a rectified version of the current image, however it is for ballpark verification, there is currently no plan to provide real time image rectification.
I'll describe in more details later how I verify that the lens distortion and perspective correction are correct.