If you´re running everything on a personal computer instead of a web server you might be in trouble. I´ve tested the system on a Windows XP without success, because of the addressing is different ("\") than in Unix. Because of this problem I could not upload files through the system and, since I had no email server installed either, no messages were sent.
You may test the system, though, for all the interactivity works, including all input information.
The files path is where all submission files are uploaded, and must be a physical address inside the hardrive or server (ex.: /usr/home/files/). The trailng slash must be entered or you will encounter addressing problems later. It should be created prior to installation and should be outside of the root folder of the system.
The base URL, even though I believe it´s not used anymore, is the web address of the system (ex.: http://www.myjournal.com/
). On Windows you may type http://localhost/foldername/ojs/