I am not sure of the question, but basically, its a program that will automatically generate a file that you will have to edit to your specifications - there will likely be lots of comments telling you what needs to go where in the file. The myconfig.cfg is the resulting filename. If you called it MyStupidlyNamedStreamTranscoderConfigurationFileCreatedDecember132004.cfg it would create a file of the same name.
The -C -c are flags - instructions that tell the computer you're doing a particular thing. Since it's -C -c, I would imagine it means "configure"
Type the command just as it says. Depending on the location, you MAY need to be root although you likely do not.