How do you make a CFG file. The site said to copy the cfgtemplate.cfg file in the SvenCoop\maps directory but I didn't find anything like that in that directory though.

fortunately that is not the only way you can do it. Check this out: http://www.svencoop.com/cfgguide.php

save the completed cfg as "yourmapname.cfg" and put it in the svencoop/maps directory.

Putting the equipment on the starting point is okay but whenever the player dies and respawns the ammo may not have respqned yet. Also, the weapons would always be on the floor. But if its the only way that I could do it then I will take it. Thanks for your advice though.

Do you know how to change the amount of ammo that comes with a weapon and how to change the time limit before the next respawn on items? Or is that a programming thing too.

You can't change that unless you know programming and if you have the Sven Co-Op source code which hasn't been released.

Remember you can always place weapons/ammo/items above the player spawn point .