This recipe here may be helpful, although the recipe will depend on the type of cuisine you plan to use the Tamarind in. According to Wikipedia a number of different countries use a Tamarind sauce and the recipes can differ significantly.
This sweet-sour sauce from southern India is often served with Pakoras. If raw sugar is unobtainable, use soft brown sugar or molasses or dark treacle instead.
Ingredients
about 425 ml (14 fl oz) 1¾ cups
225 g (8 oz) 1 cup Tamarind
900 ml (1½ pints) 3¾ cups Boiling water
1 tsp Salt
piece Fresh root ginger, peeled 2½ cm (1 in) and finely chopped
2 Tbs Raw sugar
1 tsp Hot chilli powder
method
Directions
1. Put the tamarind into a bowl and pour over the boiling water. Set aside until the mixture is cool. Pour the mixture through a fine strainer into a saucepan, using the back of a wooden spoon to push through as much of the softened tamarind pulp as possible. Discard the contents of the strainer. Stir the salt, ginger, sugar and chilli powder into the pan and simmer gently for 20 minutes, stirring occasionally.
2. Remove from the heat and spoon into a warmed sauceboat. Set aside to cool slightly before serving.
Taken from: http://www.cookitsimply.com/recipe-0010-013169x.html