Which step do you not understand from the README.TXT file? I can expand it for any future releases if I know.
For getting files onto the web site, the relevant section is the one on "Preparing Your Web Site". I have not included explicit instructions on how to transfer the book files and generated files generated in the _CATALOG folder as they will vary according to how you maintain your web site. FTP is a perfectly normal way to do this, but not the only way. The only thing that may not be clear is the _CATALOG folder and contents has to be at the same location as the Folders copied across from the Calibre Library location.
The next section on "Adding the Catalog to the iPhone/iTouch" tells you the format of the URL to set up under Online Catalogs in Stanza the iPhone/iTouch.