To use dsmdyno, set your pocketlogger to log ONLY RPM, and go to a long level stretch of cop-free road. Start the logger, start driving slowly, and shift to 2nd early, around 1500 rpm. Once the clutch is fully locked, mash the gas - here is where the dyno run starts - and don't let up at all untill you hit the rev limiter. You should only be going about 60 at this point so it's not too dangerous. Stop the logger, and maybe repeat a couple times to make sure you get a good run.

Upload the logs, and convert them to "Comma Separated Value" or .csv files, using PLViewer or pl2csv. Open dsmdyno, and click the File->Config menu option. Enter your car type (GVR4, 1G AWD, etc), gear used (2nd), weight, and tire rotations/mi (tirerack has this info), There's some defaults if you don't know. The default weight for the car is not including yourself, so add your weight. Use the File->Open menu to load your log, and you're almost there.

Use the File->Select menu to select the part of the log where you are accelerating, and select the box "Enable Spline Smoothing" and set "Time Blend" to around 0.7 or so. Hit Apply and your dyno graph should draw. Mess around with the "Time Blend" value to make the chart smoother or more jagged. You want to smooth out the ECU's jagged RPM graph, but not lose the shape of the chart. The value you need will depend on the number of samples you recorded, and the gear you are in.

Now you can go to File->Save, or File->Print to save as a .bmp or print to a printer.

Other options:
File->Config
Antialias points - more smoothness factor, 1x1 is good.
Car - what car you have, autoselects gear ratios, weight, drag
Gear - which gear you are in, 2nd probably.
Weight - Weigh your car. Or add your weight to the listed weight.
Tire r/mi - how many times the tire rotates in a mile. Tirerack will tell you.
Drag compensation - Calculate wind resistance into dyno chart. Good to enable.
SAE Corrected - Use SAE formula for HP correction based on weather. Not Implemented.
Drivetrain Loss - Use to guesstimate crank HP, 30% seems accurate for AWD.

File->Select
Enable Spline Smoothing - Smooth the ECU's jagged RPM log. You must use this.
Time Blend - blend with samples this many seconds away. "0.7" is a good number.
Rising Block - Autodetect selection to dyno.
TPS Block - If you logged TPS, find selection to dyno based on TPS > 95%
Enable Filter Smoothing - DSP lowpass filter. Don't use, doesn't woork too well
Cutoff/Rez - Filter parameters
Gear - Same as before.