this is what read me file says:
chmod 755 (-rwxr-xr-x) on all .cgi files.
chmod 666 (-rw-rw-rw-) on all files in the data directory.
chmod 666 (-rw-rw-rw-) on all your template files (if using the online editor).
chmod 777 (drwxrwxrwx) on the hits directory
chmod 777 (drwxrwxrwx) on the ratings directory
chmod 777 (drwxrwxrwx) on the directory where Links pages will be created.

so ther is nothing about lwp dir, also the thread you are talking about is written by bobie along time ago, i remmeber it very well but it does not mention anything about lwp dir