I recommend you setup the editor like you are going to make q3 map.
 
 * Go to the scripts directory under baseq3
 * Rename the existing "entities.def" file to "entities.q3def" instead.
 * Add "q1.shader" to the "shaderlist.txt" file
 * Drop the 
zip file into the baseq3 directory.
 * Extract the zip file
 * Open editor, make cool maps!
 * Setup quake 1 compiler tools in maps directory
 * Setup compiler batch file (remember special switches)
 * Compile map
 * Copy bsp/lit files to quake directory