The tf-lib folder and its contents need to be placed in /usr/share as /usr/share/tf-lib. The tf binary needs to go in /usr/bin. Permissions and file attributes such as the execute bit need to be preserved, so I'd make sure they're not being stripped out in how you're transfering it to the phone.
I tested installing the PXL with iBrickr on my Windows machine and I copied them on manually with Transmit via SFTP, also tried it via scp from the terminal without issue. I know there's not an issue with unzipping the zip on OS X and keeping it happy with the symlinks and execute bits, but Windows may be messing it up, which is part of why the PXL file was provided.
Once they're properly placed where they belong, you will need to use something like Mobile Terminal and then type in 'tf' to launch the program. If you're unfamiliar with TF, I'd suggest looking over the
author's website for more information on how to control and use TF, which is not simple like a GUI-based MU* application, such as
Atlantis, might be -- if it was ported to the iPhone, anyway.