The files you need are:
C:FBlit
C:FBlitGUI
Libs:fblit.library
ENVARC:fblit.cfg
Go to a shell and type "fblit", or double click the fblit executable. It will then load fblitgui which will bring up the configuration window. You must then press the "SAVE" button in the window for it to save it's configuration into ENVARC:fblit.cfg
Without the fblit.cfg file FBlit won't do anything (like in your case).
Good luck in getting the include or exclude mode list working though, because it doesn't work for me. I have to run it in 'include' or 'exclude' mode. If I add programs to be included, it doesn't include them. Likewise, the exclusion list doesn't work for me either.
Has anyone else had this problem? I might as well ask whilst we're on the subject.