ERROR

Don't move lmo to the drupal root folder! Everything which belongs to the module should be holded into the module folder itself.

Try that:

a) download the whole lmo
b) download the drupal lmo module (this here)
c) unzip the drupal module (after that you will find the "lmo"-module-folder)
d) unzip the whole lmo (a) into the lmo-module-folder

Tip: Take a look at the attached screens

e) enable the lmo module
f) go to www.yoursite.com/sites/all/modules/lmo/lmo an install the whole lmo (don't forget to delete the install folder after install is finished)
g) go to www.yoursite.com/admin/settings/lmo and put this into the first field: "sites/all/modules/lmo/lmo" and the admin user and password into the second and third field (default-user "admin" and password: "lmo")
h) now you can go to www.yousite.com/lmo and it should work

I dont understand step f:.

I work from cpanel (I have already unzipped the whole LMO in the drupal LMO folder). How do i now install LMO (as per step f,)

After that I followed the steps to install, when I put: www.mydomain.com/lmo, the browser shows this error:

warning: require(/var/www/vhosts/******/httpdocs/sites/all/modules/lmo/lmo/config/init-parameters.php) [function.require]: failed to open stream: No such file or directory in /var/www/vhosts/*********/httpdocs/sites/all/modules/lmo/lmo/init.php on line 25.

Any idea of this error ???

Thanks,