That's what the instructions said to do.
The following are typical errors that you may get and they are due to having missed one of the instructions above
Videos not being processed
There main reason for this is register_long_arrays. Your server may have register_long_arrays set to Off.
You should enable this (set it to On). There are 2 ways to do it:
Via you php.ini file on the server (you must restart apache afterwards). (Your host can also do this for you)
By editing the .htaccess file provided in the PHPmotion distribution. Add the following line right at the end, then re-upload it to your FTP
php_value register_long_arrays On