First, ensure that you are using the newest version of QuickFiles. Earlier versions will not work on OS X 10.6.x Snow Leopard. Download from here:http://www.gskinner.com/blog/assets/QuickFiles_10_6.zip
Unzipping the downloaded file creates a folder named QuickFiles_10_6. Inside the folder are two files. ReadMe.rtf provides the instructions. The other file is QuickFiles.workflow.
A quick diversion here. When referring to files and directories (folders) on UNIX systems, the following standard syntax is very important:
/ is the root directory of your hard drive. You access it by clicking on the iMac icon in the finder or on your desktop (there by default).
/Library/ is the Library folder at the root level of your iMac drive
~/Library/ is the Library folder within your user profile. The tilde, "~" is what makes the difference. At the beginning of a directory path, "~" is UNIX shorthand for "the home directory of the active logged-in user." Without the shorthand, it would be /Users/username/Library/ and you would have to type this out every time you used it from the command line. Thankfully, the shortcut exists.
In ~/Library/, create a folder called "Services". The QuickFiles.workflow file goes in this folder.
Open TextEdit and create a new file. I named mine "TextEditTemplate". Place this file in the same folder, ~/Library/Services/.
Test the functionality of QuickFiles by navigating to your Documents folder. From the Finder menu bar, click Finder > Services > QuickFiles. A popup window will appear and allow you to select a template from those that you have created. We have only created one template, TextEditTemplate, so that will be the only one in the list. When you click "OK," it will create a file called TextEditTemplate in the active Finder window, which should be your Documents folder if you followed the instructions. You may now edit this file in the usual way by double-clicking and waiting for the appropriate app (TextEdit in this case) to open.
Doing all of this correctly will enable QuickFile services for a single user. If you want each user on the system to have access to this service, you have to create a Services directory in /Library/ and copy QuickFiles.workflow to there. You must be logged-in as an admin user to do this from the graphical interface. Each individual user, however, must have a ~/Library/Services/QuickFile Templates/ folder with templates in it. If they do not, QuickFile will create the folder automatically and prompt the user to create templates and add them to the folder.
I don't think that there is anything confusing in the directions for setting up a keyboard shortcut in the ReadMe file. If you can't get this to work, please post back and I'll help you work through it.