This example is for 7.0b (will probably work fine with 6.5b. It may also be able to be optimized with the new simple constraints in 7.3)
NOTE: I have my interface customized. I have listed the tools used by thier names, It should be easy to find their locations in the Lightwave Interface by looking them up in the manual Index. Save often with incremented file names ie: rfoot_tut_001.lwo, rfoot_tut_014.lws. This may save you some time if you do a step incorrectly.
Open Modeler, draw 5 skelegons in the top view. Draw them from Z+ towards Z-
Open the Skelegon tree, name the skelegons the same as above. B stands for bone
In the right view move the skelegon points to match the geometry of your leg using the drag tool. Leave the root bone (L_hipB) in the orientation you created it, it needs to lie totally flat on y, pointing towards Z-.
Switch to Polygon mode. Select the root bone. Activate Edit Skelegons.