If you're working with a release, make sure to have MATSim and the networkEditor extension downloaded.
org.matsim.contrib.networkEditor.run.NetworkEditor.libs directory. Then, use the following command to start the network editor:java -Xmx512m -cp networkEditor/networkEditor.jar:matsim.jar \
org.matsim.contrib.networkEditor.run.NetworkEditor; instead of : to separate the two jar files.Depending on the size of the network you want to edit, make sure the editor has enough memory by increasing the memory limit (e.g. "-Xmx1500m" instead of only "-Xmx512m").
If the application correctly starts, you should see window similar to the one below:

To load an existing MATSim network, click on the button "Read Network" at the bottom of the window and select the network you want to load.
Alternatively, you can import data from OpenStreetMap (OSM) and automatically convert it into a network. For this, first download the osm data for the region you're interested in. The tutorial contains information on how you can download the required data from OSM. Once you have a *.osm file containing the data for your region, click on the button "Read OSM" and select the file. When loading the data, the following window will open:

The original data from OSM contains coordinates in the WGS 84 coordinate reference system. WGS 84 is impractical to work with in MATSim, so we need to convert the coordinates into another coordinate reference system (CRS). In the example above, we convert it to the Swiss national coordinate reference system. To find the corresponding EPSG codes, or the Well-Known-Text description of your CRS, have a look at http://spatialreference.org/ and search for your CRS.
Click OK to close the dialog once you have the correct CRS set. The OSM data will now be converted and the network displayed afterwards in the editor. Especially for larger osm files, have some patience for the conversion process. It may take some while to convert the data and finally show the network.
Once a network is loaded, most of the tools in the upper left corner of the window become active:

The 4 green arrows are to move the network around in the editor view. The blue + and – are for zooming in and out. In the row below, the buttons have the following functionality:
To save a network in MATSim's format, click on the button "Save Network". Alternatively, you can export the network as a Shape file that can be used by allmost all GIS applications for visualization purposes (but not necessarily for network operations that some GIS applications offer). Just click on "Export as Shp" to export the network as a Shape file.
Once you have a network loaded, you can optionally also load some existing counts for this network. If you just converted your network from OSM data, you likely won't have any such file. In that case, you can directly start to add counts where you want. Select a link by clicking on it. If the link already has counts associated, they will be displayed in the panel on the left side of the window. Click the + there to add count values, even if no counts exist yet for this link.
After you're done with the counts editing, save the counts to a file by clicking on "Save Counts".