>   \newcommand\myExample[1]{
>      \begin{example}\begin{list}{}{%
>        \setlength{\rightmargin}{\leftmargin}% symmetric

> What are the percent signs for?

For ignoring the newlines and indentation spaces.

> Also, what is the #1?

It is used to denote the argument of the macro.

For example,
   \newcommand{\foo}[1]{The argument is #1}
defines a command \foo with one arguemnt.
\foo{123} will generate 'The argument is 123' in the output.

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