This documentation is not using the current rendering mechanism and is probably outdated. The extension maintainer should switch to the new system. Details on how to use the rendering mechanism can be found here.
You can configure this extension to use tt_content, pages + tt_content, tt_news or Calamiga-elements as database table. You should think about how the result should looks like. If you need a result like in “Example 1” (flat hierarchy), you must use tt_content else you must use pages, tt_news or Camaliga elements. See chapter Reference below for the whole TypoScript configuration.