From ThiagoCMC's guide thread is a link, Step by precious step guide for P2Pool mining on Windows 7 by Holliday
which on a quick glance looks like it would easily apply to Litecoin as well, but I can't say for sure.
In an attempt to help complete noobs, like myself, I've written a hopefully foolproof guide. Please look over this and inform me of any mistakes I've made. If anyone tries this and fails, please let me know what didn't work.
Step by precious step guide for P2Pool mining on Windows 7.
1. Download Bitcoin - http://sourceforge.net/projects/bitcoin/files/Bitcoin/bitcoin-0.5.2/bitcoin-0.5.2-win32-setup.exe/download
2. Download P2Pool - http://u.forre.st/u/lqibuhzg/p2pool_win32_79cd2c5.zip
3. Download cgminer - http://ck.kolivas.org/apps/cgminer/cgminer-2.2.3-win32.zip
4. Install Bitcoin. Start Bitcoin (if windows asks to Allow Access, choose yes) and wait for it to download the full block chain. Here is a current block count - http://blockexplorer.com/q/getblockcount
5. a. Go into Control Panel > Appearance and Personalization > Folder Options > View > uncheck "Hide extensions for known file types'" (or leave it unchecked if it already is).
b. While you are there choose: Show hidden files, folders, and drives. (or leave it selected)
c. Click OK.
6. Browse to C:\Users\YourUserName\Appdata\Roaming\Bitcoin. (YourUserName will be whatever you entered when you installed windows.)
7. Right click in the folder and choose: New > Text Document. Delete the entire name (including .txt) and type the following: bitcoin.conf (hit enter, then click yes)
8. a. Right click on the bitcoin.conf file and choose edit.
b. If edit is not available, choose open. Then choose: Select a program from a list of installed programs. Click OK. Double click Notepad.
c. i. Once you have the file open and ready to edit type: rpcuser=user (hit enter), rpcpassword=password (hit enter), server=1 (don't type stuff in parenthesis, actually do it, don't type commas)
ii. Or copy and past this into the file
d. Click file in the top left corner and choose save.
e. After doing this, close and restart Bitcoin.
9. Forward port 9333. (Optional, helps with finding additional peers.)
10. Extract p2pool from p2pool_win32_592ceea.zip. (Desktop is a great place to extract this folder.)
11. a. Open the p2pool folder, right click run_p2pool.exe and select create shortcut.
b. Right click the new shortcut and choose properties. Click in the "target" box and move the cursor to the far right. Put a space after run_p2pool.exe and type: user password
c. Click OK.
12. Double click the p2pool short cut. This will start P2Pool. Let it run. (If windows asks you to Allow Access, choose yes)
13. Extract cgminer from cgminer-2.2.1-win32.zip. (Desktop is a great place to extract this folder.)
14. a. Open the cgminer folder, right click cgminer.exe and select create shortcut.
b. Right click the new shortcut and choose properties. Click in the "target" box and move the cursor to the far right. Put a space after cgminer.exe and type: -o http://127.0.0.1:9332
-u noob -p sauce
c. Click OK.
15. Double click the cgminer shortcut. This will start cgminer. If you've done everything correctly you should be mining on P2Pool!
(You should change "user" to any username you like and "password" to any password you like (strong passwords are nice). This will help with security. Be sure to change it both times you are required to type it!)
(I will add how to use bitcoind to this later, because the GUI tends to crash)
OK, to use bitcoind instead of the GUI, do the following.
1. a. Browse to C:\Program Files (x86)\Bitcoin\daemon
b. Right click on bitcoind.exe and select create shortcut.
c. Right click on the new shortcut and choose properties. Click in the "target" box and move the cursor to the far right. Put a space after bitcoind.exe" and type: -rpcuser=user -rpcpassword=password
2. If Bitcoin-qt is still running, close it and then use the shortcut you've just created to start bitcoind. You should once again be mining on P2Pool.
(Again, if you've changed "user" and "password" be sure to use the correct info here.)