I’ve used the timers, but it was some time ago. I have some code, but there is so much LPC2xxx code on the 'net and from NXP, I didn’t have problems getting mine going.
The prescaler creates a clock for the timer, if the prescaler is enabled. The divisor is written to the prescaler, as a power of 2, such as divide by 1024. The prescaler’s output frequency per the divisor, can be the input to the timer. Most microprocessors have this arrangement. The prescaler allows the timer to count more clock cycles before reaching the maximum count, e.g., rolling-over (the modulus of the counter). For a 32 bit counter as are common on ARM chips, the roll-over is 2 to the 32nd power clocks, using a start from 0.
The *Data Sheets* are mainly about the physical and electrical aspects of the NXP microcontrollers. You need the *User Manual* for all of the programming information.
You can download the User Manual (UM10114) for the LPC2129 from: