Only Paid, Permanent, and Early Adopter accounts can create custom S1 styles. If you are a free user and would like to create your own S1 style, you will first need to get a paid account. Free users can customize their journals using S1's overrides or S2's customization wizard.
In order to edit a custom S1 style, you will need to first create a style to work from, which can be done at the Create a Style page (
http://www.livejournal.com/styles/create.bml). You can either create a blank style, or base your style off an existing system style template. Once you have done this, you can then edit your style (
http://www.livejournal.com/styles/edit.bml) to your liking.
Whether you create a blank style or base your new style on an existing template, the default name for a new style is <username>-<view type>-new. (For instance, a new LASTN style would be exampleusername-lastn-new.)
You will need to change the name of your new S1 style if you would like to create additional styles for that view. Until you change the name of the style from the default name, you will be unable to create new styles for that view. The style creation page will not overwrite an existing style.
You can change the name of your style on the Edit Style page (
http://www.livejournal.com/styles/edit.bml), under "Style Description." Under "Style Options", you can choose whether or not the style is Public, which affects whether or not another LiveJournal user can see the coding that makes up your style.
You will need to save your style for any changes to take effect. You can then preview the style by using the "customview.cgi" link provided to you upon saving.
Once you have created a custom S1 style, you will need to explicitly choose to use that style for your journal. See: "How do I customize the look of my journal?" (
http://www.livejournal.com/support/faqbrowse.bml?faqid=7)
FURTHER READING
S1 style system overview
http://www.livejournal.com/developer/styles.bml
S1 style system views and variables
http://www.livejournal.com/developer/views.bml
S1 style system variables list
http://www.livejournal.com/developer/varlist.bml
How do I buy a Paid Account?
http://www.livejournal.com/support/faqbrowse.bml?faqid=21
What are overrides? How do they work?
http://www.livejournal.com/support/faqbrowse.bml?faqid=124
How do I customize my journal using S2?
http://www.livejournal.com/support/faqbrowse.bml?faqid=170
What is the difference between S1 and S2? Which should I use?
http://www.livejournal.com/support/faqbrowse.bml?faqid=173
Guide to customview.cgi
http://www.livejournal.com/users/howto/16676.html.
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