LWFS is a daemon that generates lwf files from swf/fla files. It monitors ~/Desktop/LWFS_work/ and generates lwf files automatically when any files under the directory change. After generating lwf files, it opens http://local-host-name:10080/lwfs/uuid/list/ with your default browser to show the conversion results.
http://code.google.com/p/lwfs/downloads/list contains prebuilt binaries and examples for Mac OS X and Windows. If you just want to use LWFS, please try them. You don't need to read INSTALL.md that contains more details for programmers.