Step 1: Downloading the applications.
When a computer connects to a wireless network it usually obtains an IP through a DHCP server, which is basically just a method of providing dynamic IPs so that everyone does not have to sit down and figure out what IP everyone else is using and then manually set one on their own machine. When a request is made to a DHCP server two pieces of information are recorded, your MAC address and your hostname. What MadMACs does is randomize both of these for you automatically every time you boot, or every time you manually tell the software to do so.
Once your computer is connected to the network, randomized or not, most of the traffic leaving your PC is in the clear. So any network admin, or *nix user with free software can eavesdrop on everything you do. TOR solves this problem through a suite of applications that anonymize your connection point and encrypt all your traffic.
So with both pieces of software installed you have hidden your identity from the network, and made all of your traffic unreadable by anyone else on the network you have chosen to connect to.
(Sorry, no how madmacs works, but then its pretty self explanatory)
Step 2: Installing and Configuring MadMACS
You just click OK or YES for all of the options, making sure you select your wireless card for randomization.
At setup window 5 in the MadMACs program you are given the option of typing in a prefix for the the MAC address randomized. This just identifies the brand of the MAC to the DHCP server, you can find a database of prefixes here
Advanced, paranoid users :
For super paranoid users who rightfully do not trust precompiled code from virtually unknown publishers, the source is provided with the compiled program. I've made an instrutable on how to do this.
The compiler is available from AUTOIT, here. You want version 3.