Ok,
Lines with M are *completely* ignored.

Lines that begin with a # can be found pretty much anywhere, be it at the beginning, middle or end of a block. But they should be enclosed in <!-- -->. Think of these as individual lines, that don't have any effect in the block structure itself.

There are no T's, I confused them with the F's. Sorry about that.
Now, as for the S and F's, here are some examples:
1) Input:
K One
K Two
S Alright
R Whatever?
R Blablabla
R And even more
1) Output:
<c>
<t>
<set name="temant>Alright</set>
<r>
<li>Whatever?</li>
<li>Blablabla</li>
<li>And even more</li>
</r>
</t>
</c>

2) Input:
K Perl
K Monks
S Theme
F 1234
R Examples
R More
R Yes
2) Output:
<c>
<p>%Perl,%Monks</p>
<t>
<set name="temant">Theme</set>
<setflag param="1234"/>
<r>
<li>Examples</li>
<li>More</li>
<li>Yes</li>
</r>
</t>
</c>

On a seperate note, there may be special blocks that don't have either an S or an F. Example:
K Special
K Case
R One
R Two
R Three
Here, it translates to:
<c>
<p>%Special,%Case</p>
<t>
<r>
<li>One</li>
<li>Two</li>
<li>Three</li>
</r>
</t>
</c>

Hopefully this should clear things up. If you have any other questions, don't hesitate to ask, thanks.

Kind Regards,
Marcos