As a first stage to net acceleration in a laser based EM structure RF electron pulses must be microbunched to match the laser wavelength. We report on the design of an undulator and chicane for microbunching at 800nm using an inverse free electron laser (IFEL) interaction. This includes design considerations for the hardware itself, the laser IFEL interaction and bunching performance, and a full 3D particle tracking simulation to study the focusing effects and possible emittance growth due to the fringe fields of the magnets. The talk will close with a discussion of laser-electron beam diagnostics for overlap in the undulator and for diagnosing microbunching performance.