If I can add a couple of suggestions ...
If you are running Lion, make sure that Java is installed. (The installer doesn't include it by default, as it did with previous versions of OS X.) If not, you can download and install it from the Apple website.
If the arbaro.jar file won't execute when you double-click, you can run it from the terminal window. Launch the Terminal application (located in your Applications/Utilities folder). Change the default folder to the one that contains arbaro.jar. For example, if arbaro.jar is in a folder named "Arbaro" in your user folder, type this after the prompt in the Terminal window:
cd ~/Arbaro
Now run the jar file:
java -jar arbaro.jar
Once the Arbaro GUI opens, you can make your tree. Click the folder icon to load the default trees -- usually it's easier to make a new tree by modifying one of these. Click the "Create and Export Tree" button and follow bemdesign's advice above to save it out as a Wavefront OBJ file.
It's a little clunky but it works quite well. I like the fact that you can optimize the trees and make them very lightweight -- important when you have hundreds of them in a scene.
Search YouTube for a couple of tutorials on how to use Arbaro. They assume you are also using Blender, but the info also applies to C3D.
For more info on Arbaro, the theory behind it, and suggested input parameters,
see the author's original paper here.
Steve
Edit: Didn't realize that you'd already tried YouTube. Maybe you overlooked these?
http://www.youtube.com/watch?v=uabftHFJar8
(Don't believe the video title. Arbaro works fine on Macs.)
http://www.youtube.com/watch?v=RXsqc_6BwBU
http://www.youtube.com/watch?v=uabftHFJar8