These instructions are probably out of date. 
READ THE SOURCE and check out #freepanel on freenode for help.

SETTING UP DEV ENVIRONMENT
==========================
yum install -y nsd httpd postfix mysql dovecot
mkdir /etc/httpd/{vhosts,inactive}
mkdir /etc/nsd/zones
cd /path/to/src
cp -r run/etc/freepanel /etc

STARTING STAND ALONE SERVER
=========================
cd setup/FreePanel
perl Makefile.PL
make && make install
cd ../run
perl freepanel.pl --debug

POSTFIX DATABASE SETUP
=========================
mysql < /path/src/setup/setup_db.sql


RUNNING TESTS
=========================
Tests are in this directory:
run/FreePanel/t

You will need to make sure the config is 
properly set (/etc/freepanel/freepanel.conf) for your system