The example configuration should be self-explained:
## port to listen for incomming connections
#$LISTEN = 777;
## output lines separator (used on tcp port only)
#$OLS = "
r
n";
## to find recognize if the drive is mounted, we look at the /etc/mtab for
## a line containing this string
$MTAB_ENTRY = " /zip ";
## several commands to mount the zip-drive (there are maybe different
## filesystems and/or partition numbers
MOUNT_CMDS = ('mount /dev/sda4 /zip -t vfat -o umask=0,nosuid,noexec',
'mount /dev/sda1 /zip -t vfat -o umask=0,nosuid,noexec',
'mount /dev/sda4 /zip -t ext2 -o umask=0,nosuid,noexec',
'mount /dev/sda4 /zip -t minix -o umask=0,nosuid,noexec');
## how to unmount a mounted media
$UMOUNT_CMD = "umount $MTAB_ENTRY";
## how to eject a umounted media
$EJECT_CMD = "ziptool -e /dev/sda";
## how get a status of the media
$STATUS_CMD = "ziptool -s /dev/sda";
## which device should be passed to mkfs.*
$FORMAT_DEV = '/dev/sda4';
Finally you should make zipnetd started and stopped automaticly by adding a runlevel script to /etc/init.d/ and some symlinks to some runlevel directories - this depends on your linux distribution, maybe you should take a look at whose documentation.