Before you install LSM, it is good to know that you can have multiple instances of LSM, for example one for test and one for production. Just create a different DB, webroot folder and lsm.conf file for each instance.
I assume you have basic knowledge of installing MSSQL, IIS or Apache, and so i will not get into that.
LSM requires now MSSQL server to run on. It is developed on SQL Server 2012, but should run perfectly on 2005 and 2008 also.
Just create an empty database, open LSMDB_V2.sql in the query editor, change the [LSMDB] to your database name en execute it. Make sure that you have a valid DBO user assigned to the DB so LSM can connect to it.
The LSM web GUI can run on Apache and IIS webservers with PHP. You don't have to have a powerful system to run the web GUI on.
Install PHP 5.3+ from http://php.iis.net/ or manually (use default settings) (on IIS8 you have to install the PHP console separately from http://phpmanager.codeplex.com/)
From the default site in IIS control panel start the PHP console and apply the recommendations:
Next, activate following extensions:
php_bz2.dll
php_ldap.dll
Now extract the WEBGUI folder content from LSM.zip to a folder in your IIS webroot and give the IIS user modify permissions (on a default installation this is the IUSR user).
The last thing is to restart the IIS website.
Just grab the latest Xampp distribution from http://www.apachefriends.org/en/xampp.html and install it. (Only the Apache module is necessary)
Enable the module php_ldap.dll in the php.ini config file. Copy the file libsasl.dll (found under \xampp\php) to \xampp\apache\bin folder.
If you want native MSSQL support, then get the driver from http://www.microsoft.com/en-us/download/details.aspx?displaylang=en&id=20098 extract it and copy php_pdo_sqlsrv_54_ts.dll to \xampp\php\ext. Now add the extension in php.ini: extension=php_pdo_sqlsrv_54_ts.dll
Also install the latest MSSQL client. (mostly not necessary)
You can also use ODBC and skip the above.
Now extract the WEBGUI folder content from LSM.zip to a folder in your Apache webroot (\xampp\htdocs) and restart your webserver.
Now you can go to http://yourserver/your-lsm-instance
The first time you will be asked to create a DB connection.
Click on the link to go to the Scriptcase logon screen and login with the default password scriptcase
Next, you will be asked to change the default password, do this and continue to the connection manager
Select the conn_lsm connection and then choose MSSQL Server
Select the MSSQL Server Native SRV PDO as DBMS type and fill in all the fields. Test the connection and save it. (You can also choose a other DBMS type if necessary, like ODBC, it will work just fine if you enabled the right PHP extensions.)
Now it is time to configure our "server" side of LSM.
Log on to the LSM console http://myserver/my-LSM-instance with the user admin and pass admin. (Ignore the message that the admin user has already a session open)
Now you see the information screen and the tree menu on the left. Click on settings and the global options screens opens.
It is not necessary to configure the rest of the options for the moment. (see configuration documentation)