save that as nameofyourchoice.ini in the same directory the contents of lvztoolkit.zip were extracted to
"nameofyourchoice"=whatever name you like
outfile= is for the eventual name of the .lvz file, the file= and image0= "nameofyourchoice"s need to match, they are to be the filename of the image
".xxx" is just a placeholder - you can use the following image formats (extensions):
.bmp
.gif
.jpg
.png
anyways, run "buildlevel.exe" - when it opens a browse window, find and select your "nameofyourchoice.ini" file
this should create a .lvz file named after whatever you put for "outfile="
put that .lvz file into your main Continuum directory (eg. C:\Program Files\Continuum) then go in-game and type "*putfile nameofyourchoice.lvz"
now get the .cfg file for the arena you wish the logo to be added to
use "*getfile arenaname.cfg" for subarenas and "*getfile server.cfg" for public arenas
find the [misc] section
alter (or add) the setting misc:levelfiles= so it is "misc:levelfiles=nameofyourchoice.lvz"
save changes
go in-game, type "*putfile arenaname.cfg" or "*putfile server.cfg" if you did it for public arena
that's it, re-enter the arena and it should work