No, Curve Steps have not any effect on the geometry, this parameter defines the smoothness of the spline. It is exactly the same as the Interpolation->Steps parameter on the spline object, but allows values greater than 100 (useful for some objects).
To bend the tube, you should to refine the object adding more segments along its length. For the corners, enable the 'Bevel' mode on the Geometry rollout.
Alternatively you can use a shorter tube, and a custom piece for the start/end and corner positions. The length of the middle piece is not critical because the plugin clones and slices the geometry where needed. I've attached a sample scene using this technique.
An useful trick: create always the RailClone object and the base spline on the XY plane. It's more easy to define the aligments, pivots and understand the behaviour of the plugin. Once finished, you can apply it to the final spline (which may be in any plane or orientation).