KMP location should be default one: "C:\Program Files\The KMPlayer\KMPlayer.exe"
if this is not a case, you should change it in configuration file: "KMP Thumbs Automatization.cfg"
thats the case for x64 bit OS, correct location is "C:\Program Files (x86)\The KMPlayer\KMPlayer.exe"

For the first time, only once, you have to make Story board manualy with any video you want.
Open video in KMP, press Ctrl+Alt+S to open Storyboard window, and set all parameters 
(like picture format, resolution, number of columns and rows,  ...)
In new vestions like 3.0.0.1441, you have to enable the KMP transform filter, first.
To enable it: press F2, Video Processing, General (tab), Condition = Always Use (Strongly Recommended)
You should, also, set F2, General, General (tab), File open method = Open selected file(s) only

Start application (KMP Thumbs Automatization v1.7.exe)

Drag&Drop files to be processed to Black listbox. (from TC UP, TotalCommander, Explorer...)
Click Green Start Button.

ps1. For slow computers, increase Wait time between operations (to 5 or ...)

ps2: If you want to use WinLIRC method, KMP should be prepared first:
Start application (KMP Thumbs Automatization v1.7.exe) and select WinLIRC method.
it sould say that WinLIRC server is running, and listening for new connections on port 8765.
Start KMP, and go to preferences (F2)
"General" > "Keys/Global Control", Check box WinLIRC (127.0.0.1:8765), 
now see in KMP Thumbs Automatization, in status line it should Accept connection,
(if not, firewall may be blocking eather of these two applications)
In KMP preferences, on tab General, expand &Capture and select "Make S&toryboard... -Ctrl+Alt+S"
now switch to our application and click on "WinLIRC Storyboard" button.
If everything working, field "RemoteCMD" in KMP should be populated with text "StoryBoard"
in similar way, goto KMP tab General, and click on "Media &Info... -Alt+J"
then switch to our application and click on "WinLIRC Media info" button.
Field "RemoteCMD" in KMP should be populated with text "MediaInfo"
Now close all windows, KMP is set.

Tested with: WinXP SP3, Win7 x86, Win7 x64.