To run this application you need to have GNU Radio 3.3 with gr-qtgui component installed, as well as a USRP1. Of course, it can be modified to use USRP2 or you can try the UHD branch. I do recommend using the UHD branch because that is where I do most of the development and it has features that are not available in the 'master'.
If you have problems with audio while changing receiver settings at runtime you can try to apply this patch: https://gist.github.com/664132 (note that this fix has been applied to GNU Radio since December 2010).
I have also made some modifications to the gr-qtgui code in order to enable grid, have nicer colors and take up less vertical space to better fit on laptop screens. These changes are available in this patch: https://gist.github.com/668462. This is not mandatory though, just part of the experiment.