Controls can't be configed as far as I know. You can press a and s for bomb and rope I think. And you heal a heart everytime you bring a damsel to the end of the level.
Run the file called "config".
Includes setup for custom keyboard and gamepad controls.
The readme probably wasn't updated.. I think an earlier version of the game had configuration options when the game started, then it was moved to a seperate app.
Re: Healing - grab damsel and bring her to exit. She kisses you for +1 health.