Installation: You need Microsoft .Net Framework (at least version 3.5) to run the tool. Other than that, no installation is required.
Firewall settings: As of v 1.8.0 StoDemoLauncher wants to check with the sourceforge-server for updates every six hours (the first time directly after applicaton launch). If you do not want that, you can safely block its request using your firewall. No data is submitted, except for what the http protocol requires to download the current version information on this page. If a newer version of StoDemoLauncher is found, you are asked, if you want to visit the download page on sourceforge. That is all. You can safely block StoDemoLauncher with a software firewall and won't loose no functionality other than the auto-update. Since 2.9.0 you can disable the feature entirely in the Tools->Options menu.
Disclaimer: Be prepared for bugs. And backup your demo files! The tool is not developed, endorsed, supported, or affiliated in any way with Cryptic Studios, so please don't bug them about it. Also, use this at your own risk! I tested it with Win XP 32-Bit and Win 7 64-Bit and encountered no problems. But if you do, and it blows up your computer, that will be your problem and your problem alone . If you want to redistribute it, feel free to do so. I'm releasing it to the public domain as a birthday gift to the STO community. If you want to look at the source code, you can do so here.
I'd be glad to hear some feedback, bug reports, and feature requests.
P.S.: Thanks to CaptNeo, who setup the project at sourceforge.