This video goes through the process of creating a configuration form in order to save settings to the variables table in the database, and how to integrate those variables into your module.
$item array in the
function demo_menu() should be named
$items, to match the
return $items; line. (Either that or
return $items; should be fixed to
return $item;.) Just make sure the array you are building matches the name of the variable you are returning.