To install lola copy the contents of the zip file into a location on your web server (normally root), then load up Lola in the browser e.g localhost/lola
Follow the onscreen instructions and you should be good to go
You can now delete websites from within the app, simply hover over a website and click the red X in the top left corner.
All thumbnails live in the sites folder, if you want to add your own just drag a JPEG of the website with the same name as the title but replacing spaces with "-" (no quotes).
Sizing isn't an issue either, so if you use WordPress you can use the same thumbnail.
To add a website click the + button on the top right side and fill out the form, name is the only required field and leaving location blank will add it into the default directory (rootHttp)
If the folders already exist lola won't try and create any.