Are you on linux or windows?
first make sure that your apache server and mysql server are nunning, if not start them.
To create a database you can either go a simple way using a client like phpmyadmin navicat (lite) or use your console command prompt/terminal/ ...
to create a database:
create database name_of_your_database;
to use it:
use name_of_your_database;
and so on....
(you need to be as system administrator to be able to create database or be granted the privilege)
where to put the php files? in your apache document root directory:
in linux it should be somewhere in
www > htdocs
depends on your distro (for me it's srv/www/htdocs)
in windows it should be in some directory maybe your system drive:
inetpub > wwwroot
(to be able to write/add/delete files in this directory also you need administrator privilege)
