First, the main thing the townspeople do to "conquer the flypaper" is they fight the Nazi's. One incidence was when Alexander Morden shot and killed one of the soldiers. Another incidence was when Molly Morden stabbed Tonder. "Slowly she raised the shears and placed them inside her dress1." When the packages were dropped the townspeople found them and hid them to fight back.
Second, the Anders brothers snuck out of the town and got the townspeople weapons and food, which is chocolate. "The Ander's boys are sailing for England. They've got to.2" Annie was telling Molly this in the story, so that they could use Molly's house as a sort of safe house. England then sent little packages to the town. "The tiny parachutes floated like thistledown and the breeze spread them out and distributed them as seeds on the ends of thistledown are distributed3." These little parachutes had some dynamite and a bit of chocolate in them. Townspeople found them and hid them, just so they had a fighting chance against the Nazi's.
Lastly, all the townspeople kept quiet and barely ever talked to the Nazi party. They kept their pride of their town. Loft and Hunter were talking, and Hunter asked what they said and Loft's response was "Say? What do they ever say?