Sorry, I've been gone for a little while (as PHeMoX said)...
Everyones covered the basics. It's easier if your using the latest beta's, as you can simply right-click an object and under its properties menu, select the material option.
You can adjust material settings by right clicking the inlcuded "NM.wdl" from your "resources" tab in WED, and then opening the "customize" option. This will open all the options for customizing the shader.
A very unfortunate mistake on my part, the shader does not calculate the first light in the level. I had commented this out (for some odd testing reason). I'm hoping to realese a fixed version soon...
If your still having trouble, let me know (detailed descriptions please), and I'll help you the best I can...
- I should probably also add a demo level soon..., but this isn't really a priority at the moment.