I haven’t seen that tutorial around latley, but essentially what you do is polypaint with the RGB switch on and intensity set to 100. Make sure you fill your ZTool with a color i.e. white and then paint with another color where you want your edge loops to be. Your tool cannot have a subdivision history so you must delete higher or lower subdivisions before doing this operation.
Go to: Tool> Polygroup> From Polypaint; that will create polygroups from the your polypaint. Go to: Tool> Geometry> Edgeloop> and press the Grouploops button. That will convert you polygroups to edgeloops. There are also some adjustment parameters to the right of the Grouploops button.
When you are done you can simply fill the tool with white again.
I hope this helps.