http://lsdocs.shellfront.org/ is slightly out of date, but should help in understanding how the config files work. Basically your configuration files in the simplest sense are parsed into four different data types: integer, string, boolean, color. While the remaining lines are parsed as tokens. Examples (note a semicolon denotes a comment in the config):
That is the basis of the configuration files. You have to read each modules documentation to understand what data type each setting is, and what they affect. (note: the first word on each line is the setting name)

Also, the Litestep "core" contains no GUI functionality (for the most part), and depends completely on 3rd party modules (plugins) to implement a useable desktop. These modules are loaded via the "LoadModule" command (example):
Now, if you are trying to understand the configuration files that come with Omar's Litestep Installer... good luck. They involve a ton of scripting and use of variables (variables are the $dollarsign$ stuff (see the lsdocs link for info).

My suggestion, if you really want to learn Litestep is to get the 0.24.7 RC3 core files, create a blank step.rc configuration file. Download jkey.dll. Learn how to use jkey.dll to launch programs via hotkeys. Here would be my suggested initial step.rc config:
The "!recycle" line will reload your configuration.
The "notepad" line will open your config file in notepad
The "!quit" line will quit litestep
The "explorer" line will open up explorer file manager

I assume you put all of this in the folder "C:\LSTest" with a "modules" sub directory where you put jKey.dll (and other modules you download).

To use this example setup, quit (but do not uninstall) your current version of Litestep (read the theme documents to figure out how) then launch the litestep.exe in the LSTest folder. Nothing will appear, but the hotkeys should work, and you can go from there. Good luck, and ask questions. Join irc.freenode.net #litestep if you want.